Iran boosts export muscle with new oil tankers

Iran has taken delivery of several new tankers from Chinese shipyards, giving it greater flexibility in maintaining oil exports in the face of Western sanctions.
Iranian crude oil imports rose in December to their highest since European Union sanctions took effect last July, helped in part by more tankers deployed.

Since the start of 2013, two supertankers have joined Iran’s trading fleet, with another three new vessels having arrived in recent months, according to industry sources and shipping data. Each vessel has a maximum capacity of 2 million barrels of oil.

“Right now Iran needs every tanker, and it will certainly make life easier for them,” said Sam Ciszuk with KBC Energy Economics consultancy.

“With a few more tankers, they could build floating storage to make sure they can provide a buffer for these big fluctuations in oil demand,” he said, referring to holding oil on board ships at sea until buyers can be found.

Iran’s main tanker operator NITC has been blacklisted by the West, and the EU has imposed an outright ban on ship insurance provision. The exit from Iran of top providers of ship certification, vital for ports access, and the de-flagging from international registries of vessels have added to operational challenges for Iranian shipping firms including NITC.

“Iran is having to stay ahead of sanctions and needs to make sure they can keep their fleet on the water, which includes changing the flags of their ships and finding certification for their vessels,” a shipping industry source said.

With the latest acquisitions, NITC’s supertanker fleet has been boosted to 30 vessels with a maximum carrying capacity of 60 million barrels. It has an additional 14 small crude oil tankers.

NITC officials could not immediately be reached for comment.

The Atlantis and Infinity, the two vessels that joined NITC’s fleet in recent weeks, are part of a $1.2 billion contract with two Chinese shipyards that was ordered in 2009 for 12 new supertankers. The Carnation, Rainbow and Skyline reached NITC last year.

Last year sources in China had said the yards had planned to deliver the 12 by the end of 2013 to NITC.

An industry official in China familiar with the matter said he was aware of “several new tankers delivered from China’s shipyards over the past one or two months”.

“All we heard is new tankers being delivered, and that is good news for us,” the official said.

Iran also took delivery of a liquefied petroleum gas tanker in January, vessels that can carry propane and butane, data showed.