Iran building $1.8bn pipeline to bypass Strait of Hormuz
The pipeline will lead to Jask Port, outside the mouth of the Gulf, which will be home to two refineries and an export terminal with a host of storage facilities
Iran's Minister of Petroleum Bijan Zanganeh said that the nation is building a $1.8bn oil pipeline project from Goreh to Jask Port, just outside the mouth of the Gulf, bypassing the Strait of Hormuz. Hormuz is a strategic chokepoint for oil and gas and has been the focal point of recent regional shipping tensions.
Zanganeh said this was part of plans to maintain exports, protect them from issues and grow its shipments from the Caspian.
The project would transform the region as various oil storage facilities, export jetties, wave breakers and single buoy mooring systems would be built in Jask.— IranOilMinistry (@VezaratNaft) October 1, 2019
He said that two refineries as well as petrochemical facilities were also planned to be build in the region afterwards.
He also noted that $700mn of the total investment would go towards developing Jask Port, and said that the project would transform the region. The port will have multiple oil storage facilities, export jetties, wave breakers, and single buoy morring systems, according to a report by the Ministry of Petroleum's news agency, SHANA. The first product to be experted from Jask Export Terminal will be gas condensate from South Pars in the next year.
The port of Jask will also be home to two refineries, with a daily capacity of 300,000 barrels and 150,000 barrels, respectively. Zanganeh said that building permits for the refineries have been issued.
Reuters reports that Iran has been planning to set up this terminal since 2012.