The first phase of crude oil exports from Jask oil terminal in southeast Iran will commence by March 2021. Once fully operational, this project would transfer 1mb/d of crude oil from Iran’s oil-rich west to Makran region located east of the Strait of Hormuz to be exported. In addition, feedstock supply to downstream industries, petro-refineries and petrochemical plants are among objectives set forth in the establishment of this oil terminal.
At this terminal, it would be possible to store 10 million barrels of various crude oil grades. Jask terminal is Iran’s second largest oil export terminal. President Hassan Rouhani first spoke about the Jask crude oil export terminal in March 2014 during a provincial visit to Hormuzgan Province. The project was given priority since the very beginning due to its strategic significance. After that, construction of the Goreh- Jask pipeline and a crude oil export terminal inJask Port became a priority for National Iranian Oil Company (NIOC) under the leadership of Petroleum Engineering and Development Company (PEDEC).
Construction phase of this project started in 2018 by choosing contractors and striking several contracts. Currently, several contractors are active in various sectors. Touraj Dehqani, CEO of PEDEC, told Iran Petroleum: “Implementation of this project coincided with the tightening of US sanctions against Iran’s petroleum industry, which adversely affected advancement of projects. However, we managed to overcome bottlenecks.”
One of these bottlenecks was the issue of supply of pipe and rolling. For this purpose, contracts were signed with Iranian contractors who have managed to manufacture pipes in compliance with standards. That is a big privilege for Iran.
Supplying pumps was another bottleneck for this project whose implementation required 50 pumps. Based on preliminary studies, each pump had been designed for a 5.6MW power. But since Petroleum Ministry intended to concentrate on domestic capacity, the pumps were reassessed and the primary design of the pumps was reconsidered in order to bring the power down to 2.6MW. Finally, three Iranian companies manufacturing such pumps won the tender bid.
The third bottleneck was the massive and continued presence of Iranian contractors. Currently, six contractors are in charge of pipe- laying, four contractors in charge of pumping station, and other contractors are in charge of building facilities and terminal in the Makran coastal area and building crude oil storage facilities with capacity of 10 million barrels. Almost all contracts have been signed for this project. Dehqani said using domestic capacities in these entire projects top the agenda of the company, adding: “By becoming active in all fronts, we seek to implement this project by March 2021. Based on a plan which we remain committed to, the supply of pumps will begin in autumn 2020. Meantime, storage tanks with 2-million-barrel capacity will be delivered by March 2021.”
He said that the construction of a terminal to carry crude oil from Goreh to Jask is a national and strategic project for Iran. This project requires abundant financial resources, but the government has decided to finance the project by dipping into the National Development Fund of Iran (NDFI) in order to play its strategic role in this project.