Mega crude oil tanks in the port of Jask in the southern Hormozgan Province will have the capacity of storing up to 30 million barrels of crude oil, the managing director of National Iranian Oil Engineering and Construction Company said.
Delineating the major project, Hamid Sharif-Razi added that the construction of crude storage tanks is underway.
"The tanks are planned to store 10 million barrels in the first phase, which could increase up to 30 million later," ISNA quoted the official as saying on Monday.
"The plan calls for laying 1,000 kilometers of a 42-inch pipeline from the city of Goureh [in Bushehr Province] to the port of Jask," he added.
The Petroleum Engineering and Development Company (PEDEC), also known as Matn, will manage the pipeline project with NIOEC's consultancy.
Sharif-Razi noted that upon completion, the pipeline will have the capacity to transfer 1 million barrels per day of heavy crude.
According to the official, laying the pipeline is a key part of Jask Oil Terminal, which is slated to increase the capacity of the country's oil exports.
The terminal is part of a development plan in the region to diversify Iranian oil export hubs. The project, estimated to cost upwards of $2 billion, is expected to be completed by 2021.
According to Noureddine Shahnazi-Zadeh, the chief executive officer of PEDEC, the terminal could ease the load of tanker traffic at Kharg Oil Terminal off the Persian Gulf coast, which is responsible for more than 90% of Iranian oil exports.
Shahnazi-Zadeh added that Jask is a strategic hub for a score of reasons, including its location on the country's Makran Coast stretching along the Sea of Oman. It would allow vessels to load crude oil without having to move up to oil terminals in the Persian Gulf.
Since a large number of joint oil and gas fields are located in the Persian Gulf, the terminal will also help the country expedite oil storage and export operations.
Sharif-Razi said his company will also finance the construction of five pumping stations and two related terminals.
"Petrochemical and refining complexes are due to be established in Jask region with private sector participation," he said.
