IOPTC Expanding Oil Supply Infrastructure

The Iranian Oil Pipeline and Telecommunications Company (IOPTC) is ready to transfer oil derivatives from the newly-launched Persian Gulf Star Refinery in Bandar Abbas in southern Hormozgan Province to the central and northern regions, the company managing director said.

"Existing pipelines in the Persian Gulf region can carry the refinery byproducts including 12 million liters per day of Euro-4 grade gasoline to selected destinations. But before the second and third phases of the refinery become operational (by March 2018), pipelines should be expanded," Abbas-Ali Jafarinasab was quoted as saying by IRNA on Tuesday.

IOPTC is in charge of transporting crude oil and petroleum products across the country. It is a subsidiary of the National Iranian Oil Refining and Distribution Company.

According to the official, construction of new pipelines to transfer petroleum products to southern oil terminals tops the IOPTC agenda because "this approach has always had priority over other means of supply, such as using tanker trucks."

Pointing to the ventures to boost oil transfer capacity, Jafarinasab noted that developing the Bandar Abbas-Rafsanjan pipeline is a major plan that should gain momentum to increase the supply of oil products as more gasoline as well as other products are planned to be produced. Wrok on the pipeline, which began in 2015, is due to be completed in 36 months at a cost of $450 million.

"Bandar Abbas-Rafsanjan-Nain-Ray pipeline, which is due to become operational in the near future, is a 26-inch-diameter pipeline that will facilitate supply of refined oil products, especially Euro-4 gasoline, from the Persian Gulf Star refinery to Tehran and other cities in the central and northern regions," he added.

The pipeline is designed to transfer 50 million liters (equivalent to 360,000 barrels) of petroleum products per day. Without the pipeline, thousands of tanker trucks would be needed to carry petroleum products.

On moving oil byproducts from the north to oil terminals in the south for export, Jafarinasab said that studies on Ray-Arak-Ahwaz pipeline are underway. The pipeline will allow for the transport of petroleum products from south to north and vice versa.

In related news, Alireza Rajabpour, deputy for exports and imports at the National Iranian Oil Products Distribution Company, said exporting oil byproducts to neighboring sates like Iraq, Armenia, Pakistan and Afghanistan, is on the agenda.

Highlighting NIOPDC policy to reduce export costs, he noted, "Regarding the pipelines and other infrastructure such as oil storage facilitates, the closer the storage units to border areas, the less expenses will be incurred for exports, which in turn will curb fuel smuggling."