Iran Plans Huge Oil Storage Facilities

The managing-director of Iran’s Oil Terminals Company (IOTC) said 10-million-barrel underground crude oil storage facilities are to be constructed in the country.

Pirouz Mousavi told a press conference at Tehran’s Oil Show that the studies for the construction of the storage tanks started last year in three provinces.

He said the United States owns nearly 700-million-barrel and Japan has nearly 100-million-barrel storage facilities for strategic oil reserves.

“These stockpiles are used only in times of crisis and they are different from regular storage facilities,” said Mousavi.

He underscored a 64-percent progress in the construction of four one-million-barrel storage facilities in the Kharg island, saying, “These facilities are under construction with a 420-million-rial cost and they have made 90 percent progress. They would raise the country’s crude oil storage capacity to 28 million barrels.”

The official stated that these four facilities will be ready in September and would become operational in February next year.

Mousavi also pointed to the construction and delivery of eight storage facilities in Assalouyeh. “These facilities have been constructed with the cooperation of Pars Oil and Gas Company and delivered to IOTC. They would increase the capacity of gas condensate exports in this region from 400,000 to 1.2 million barrels.”

“A 10-million-barrel storage facility is being constructed in Genaveh Port,” Mousavi said, adding that this facility is under construction by the private sector.

Regarding an oil pool in northern Iran, he said the project is under way with 62 percent progress. He forecasted the project to come on-stream in the winter.

Mousavi said the oil pool is costing 460 billion rials, adding that cleanup operations in the second phase of the project are under way.

The official said a crude oil exports system is being optimized in Kharg with an investment of 6 million Euros plus 63 billion rials.

He said 30 systems aimed at preventing formation of sediments have been constructed inside the country. He noted that Iran was dependent on foreign companies for these systems.

Mousavi said Iran faced no problem with crude oil exports, and added, “We have no consignment on water and if there is any it is waiting for loading and exports.”

Regarding the construction of Jask Oil Terminal, he said the studies for the first phase of the project are over and “we expect the construction to start after a contractor has been chosen in the coming months”.

Mousavi said the total investment needed for this terminal would be 2.4 billion dollars, adding that the terminal would handle 20 million barrels of crude and employ 5,000 people.

Iran’s 18th International Oil, Gas, Refining and Petrochemicals Exhibition started work on Wednesday.

The show, which is the largest oil industry even in the Middle East, will end work today.

Officials say the presence of 1,100 Iranian and foreign companies on 42,000 square meters of land in this exhibition indicates that the US-led West has failed in their objectives to isolate the Islamic Iran.