Iran’s capacity for holding strategic petroleum reserves, including gasoline and diesel, will reach close to 13 billion liters by the end of the current Iranian year (ending March 20, 2017), director for engineering and planning at the National Iranian Oil Products Distribution Company announced on Tuesday.
“Five oil storage units are currently under construction, of which two will go on stream this year,” Abdollah Mollabaqer was also quoted as saying by Mehr News Agency.
According to Mollabaqer, an oil depot in Birjand, the provincial capital of South Khorasan in eastern Iran, which consists of 11 reservoirs with a storage capacity of 100 million liters as well as a 120-million-liter oil stockpile in West Azarbaijan Province’s capital Urmia with 11 reservoirs are due to become operational.
The official added that on condition financial resources are provided in a timely manner, the two storage depots can become operational by the end of summer.
Referring to the fuel storage units that have gone on stream, Mollabaqer said that over the past year, Mahshahr oil stockpile, which is capable of storing 300 million liters in 16 tanks, a 68-million-liter stockpile in Malayer in Hamedan Province in 8 tanks and Shiraz oil depot that can store 168 million liters of liquefied fuels in12 tanks became operational.
"These have added 536 million liters collectively to the country’s total capacity of strategic petroleum reserves," he said.
The official noted that tendering Gorgan oil stockpile is on the company’s agenda, adding that the construction process of new storage tanks has been completed.
"The second phase of Gorgan stockpile includes building a new loading terminal and other installations," he said.
Mollabaqer said that in addition to setting up new depots, the construction of new tanks is another plan for increasing storage capacity.
In a world awash with cheap oil and plunging profits, the marginal profits of storage tank owners have increased significantly.
While not nearly as famous as giant oil producers like Exxon Mobil Corp. and Royal Dutch Shell, storage companies such as Vopak NV, Kinder Morgan Inc., Oiltanking GmbH and Magellan Midstream Partners LP are benefiting from rising demand for onshore tanks and higher prices to rent limited space.
Driven by record production from shale fields, the oil glut is bigger in the US than in any other region.
Oil has surged more than 70% from a 12-year low reached in January on signs the global surplus will ease as US output declines.
OPEC members and some non-OPEC states are due to hold a summit on June 2 for freezing oil production.
