Iran increases fuel storage capacity

Iran is to increase its fuel storage capacity by 15% to reach 10.9 billion liters, says the managing director of National Iranian Oil Products Distribution Company (NIOPDC).

“The current oil products storage capacity in the country is around 9.4 billion liters, but it will reach 10.9 B/L by the Government week (starting August 29),” Farid Ameri told Fars News Agency on Thursday.

He said that, considering the added storage capacity, NIOPDC will have no problem in providing the people with their needed oil products including gasoline, gasoil and kerosene during the incoming autumn and winter.

The announcement comes as Iran has announced plans to increase its domestic gasoline production in the next five years in the face of a US Senate quest to impose sanctions on imports to the country.

Last month, the US Senate approved a bill that would give Barack Obama’s administration the power to pressure Iran to forego its peaceful uranium enrichment activities.

The sanctions would target Iran’s gasoline imports. Iran currently imports about 33 percent of the gasoline it consumes.

With refinery upgrades expected by the end of this year, Iran’s nine refineries should cut dependence to 25 percent, according to the Iranian Oil Ministry’s official news service, Shana. And with other upgrades already underway and even partial success in completing the seven new refineries already under construction, Iran expects to become a gasoline exporter by 2012.

The Managing Director of National Iranian Oil Company Seifollah Jashnsaz said earlier in August that the Islamic Republic already has 9 refinery development plans underway and major advances of between 80 and 90 percent have been made in this respect.

The developments come as China has increasingly tied its energy security to Iran.

Earlier this month, Iran has signed a deal, estimated to worth up to $3 billion, with a Chinese consortium for the development of two Iranian refineries.

Under the deal, the Chinese consortium would help Iran build a new refinery in the southwestern oil-rich province of Khuzestan.

Chinese investors will also finance a project to increase the capacity of an existing refinery in the city of Abadan by 210,000 bpd to 360,000 bpd.

According to the deal, estimated to worth $2-$3 billion, both projects will become operational by early 2013. The report did not say which Chinese companies were to be involved in the projects.