Feb 9, 2021, 12:21 PM
Journalist ID: 1843
News Code: 84223686
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Iran adding 100m barrels oil storage capacity

Tehran, IRNA – CEO of Oil Industries Engineering and Construction Company (OIEC) said on Tuesday that it’s working to add 100 million barrels to oil storage capacity, with a 3.5 million barrels storage under construction in Qeshm island.

Gholam Reza Manuchehri said in an oil, gas, and petrochemical products investment event that the Coronavirus pandemic has caused storage of oil and oil products to increase by 20 to 30 percent in most oil-producing and consuming countries around the globe.

He also opined that construction of new oil storages alongside the shores of the Persian Gulf and the Gulf of Oman not only would lower demurrage costs, but also would increase Iran’s bargaining power in oil export, and also significantly reduce the risk of producing oil during high volatility periods.

Iran’s Sixth Development Program Act has provisioned construction of 100 million barrels oil storage, more than half of which, roughly 57 million barrels, has been materialized according to the official.

Manuchehri said that the second phase of the Qeshm Island oil storage project, with 3.5 million barrels capacity, has begun by a 130-million-dollar investment.

Iran has now an oil storage capacity of 15 days, while the global standard for countries like Iran is 30 to 60 days of storage capacity, the official said.

20-million-barrel storage has also been planned to be added to Jask storages to be used by the 1,000-km Gore-Jask pipeline.


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