Page 4 - MEOG Week 19 2021

MEOG COMMENTARY MEOG

Iranian exports come

into focus as Sea of

Oman exports near

The Islamic Republic is nearing the completion of its new strategic export
pipeline, while production and shipments are already edging upwards.

IRAN THE first phase of a pipeline project that will Bahregan and Jask terminals for onward export.
enable Iran to export crude oil from its Sea of Phase one of the 42-inch (1,067-mm), 1,000-
Oman coast – offering direct shipping access km pipeline will provide for the transportation
WHAT: to the Indian Ocean – is scheduled to come on of 460,000 bpd and 254,000 bpd of heavy and
The Goreh-Jask line stream before the end of May, according to a light Iranian crude respectively.
and associated Jask Oil company official. Crude will be moved directly from the North
Terminal will allow Iran to Meanwhile, focus on the country’s exports Azadegan, South Azadegan, Yadavaran and
diversify exports as well has sharpened with flows ramping up ahead of Darkhovin oilfields, while supply from North
as provide a strategic a potential breakthrough in sanctions talks in Yaran will be moved to a facility at Jofair before
location for shipments Vienna. onward transportation to the West Karoun sta-
outside the Strait of tion and beyond.
Hormuz. Conduit completion Phase 2 is also underway, which will increase
Pipe-laying for the Goreh-Jask pipeline has been the capacity of the line to more than 1mn bpd.
WHY: completed and welding is in the final stages, The wider project will include five pumping
The Kharg Island terminal according to Touraj Dehghani, managing direc- stations, two pigging stations and terminals
currently accounts for tor of the Petroleum Engineering and Develop- and 20 500,000-barrel tanks with a capacity of
around 90% of Iran’s ment Co. (PEDEC), a subsidiary of the National 10mn barrels of oil as well as offshore facilities
exports. Iranian Oil Co. (NIOC). for exporting crude oil.
Dehghani was quoted by local press as saying: Iran has set out to reduce the vulnerability
WHAT NEXT: “Close to 1,000 km of pipes are in place and the of its oil exports to disruption. Around 90% of
There are indications of first phase of the project is scheduled to come on exports are currently loaded at the Kharg Island
increasing production stream in May. It will transfer 300,000 barrels per terminal and must pass through the Straits of
volumes, while Tehran day [bpd] of crude oil from Goreh oil terminal Hormuz, where Iran has a potential chokepoint.
intends to ramp up in Bushehr Province to Jask Port in Hormozgan The total cost of the pipeline was anticipated
condensate output to Province.” to come in at around $1.1bn, but Dehghani said
satisfy customers keen to The pipeline will carry crude from the oil- in December that this had been reduced by
see sanctions lifted. fields in the West Karoun cluster, linking the around $586mn, telling President Hassan Rou-
Gulf port city of Goreh in Bushehr Province to hani that the savings had been achieved by using
the Omidieh pumping station, then on to the domestic manufacturers to provide all of the

P4 www. NEWSBASE .com Week 19 12•May•2021