Page 4 - DMEA Week 13 2021

DMEA COMMENTARY DMEA

Iran closes in on completion

of strategic oil pipeline

The Goreh-Jask pipeline will open up a major new export route for Iran in the
Sea of Oman, easing the Islamic Republic’s reliance on existing terminals.

MIDDLE EAST CONSTRUCTION has reached 80% on the first integration and pipe connections are in the final
phase of Iran’s new strategic oil pipeline allowing stages.”
it eventually to export 1mn barrels per day (bpd) Meanwhile, final work and water testing has
WHAT: of crude from its Sea of Oman coast outside the reached 70%. He added: “In the stations section,
Progress is continuing on Strait of Hormuz. in station number 2, with 80% progress, the final
an oil pipeline and export In a call with President Hassan Rouhani, stages of tests and commissioning are remaining,
terminal project in Iran Touraj Dehghani, CEO of the project developer and in other stations, the situation is the same
that will create a new Petroleum Engineering and Development Co. and they are all going through final stages of
route to market. (PEDEC), said that more than 50% of works completion.”
had been completed as efforts intensified over Work began on the line last April, with Pres-
WHY: the past Iranian calendar year, which ended on ident Hassan Rouhani saying at the time that
Iran has long been keen March 20. “Jask will turn into Iran’s key hub of oil exports.”
to ease the strain on the The pipeline has been accorded priority from The pipeline will carry crude from the oil-
Kharg Island terminal, Iran’s Ministry of Petroleum (MoP) because of fields in the West Karoun cluster, linking the
which currently accounts its importance in offering an alternative to the Gulf port city of Goreh in Bushehr Province to
for 90% of exports. country’s reliance on existing terminal infra- the Omidieh pumping station, then on to the
structure, as well as increasing export capacity Bahregan and Jask terminals for onward export.
WHAT NEXT: as the Islamic Republic appears set to ramp up Phase one of the 42-inch (1,067-mm), 1,000-
With the first single-point exports to China following the signing of a major km pipeline will provide for the transportation
mooring now in place, deal this week. of 460,000 bpd and 254,000 bpd of heavy and
once the first phase of light Iranian crude respectively. Crude will be
the pipeline is complete, Progress update moved directly from the North Azadegan, South
Iran will be able to move Dehghani told Rouhani: “In the pipeline sec- Azadegan, Yadavaran and Darkhovin oilfields,
around 700,000 bpd of tion, about 1,000 km of pipes have been supplied while supply from North Yaran will be moved to
crude to Jask for export. and sent to the site, and the welding process, a facility at Jofair before onward transportation

P4 www. NEWSBASE .com Week 13 01•April•2021