Iran is building a US$1.8 billion oil pipeline to the Gulf of Oman in an effort to protect its exports.
According to Reuters, Iran is building an oil pipeline to the port of Jask outside the mouth of the Gulf as part of the country’s plan to protect its exports against potential regional problems and increase shipments of Caspian oil.
Iranian Minister of Petroleum Bijan Zangeneh said the oil pipeline project from Goreh to Jask Port would cost US$1.8 billion, with US$700 million being spent solely on the port’s development.
“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,” Minister Zangeneh said on the ministry’s Twitter account.
The terminal has been in planning since 2012, with urgency increasing following a drop in Iranian crude exports in June after Washington, US tightened sanctions on the country’s oil exports in May.
Reuters stated that three unnamed Iranian firms have signed contracts for the manufacturing and maintaining of 50 electropumps for the project over a five-year term.
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