Muscat: Iran is planning to construct a huge oil terminal in the port city of Jask, off the Sea of Oman in south of the country, said an official.
Pirouz Mousavi, managing director of the Iranian Oil Terminals Company (IOTC), said that the construction of the oil terminal in Jask — which involves storage tanks, loading and unloading wharves, single-point moorings (SPM) as well as onshore and offshore facilities — would need an estimated $2.5 billion in investment, according to Press TV.
He said Iran's private sector as well as foreign companies may be invited to contribute to this project.
Mousavi added that three SPMs will be constructed in this terminal, adding that state-of-the-art technology will be applied to the storage tanks.
He stated that pipelines are to be laid out to deliver oil from Neka oil terminal near the Caspian Sea and also from oil-rich regions in southern Iran to Jask Port before being exported.
Mousavi said establishment of an oil terminal in Jask will shorten the distance for oil delivery and thereby exports costs.
According to Mousavi, Jask oil terminal will also boost Iran's storage capacity and provide the country with a bargaining chip in its oil transactions.
In June, Akbar Torkan, a top aide to Iranian President Hassan Rouhani, said Kazakhstan plans to construct a pipeline running through the Iranian territory which will end in Jask, where tankers will be able to dock to load petroleum products.
He added that Iran also seeks to lay a pipeline projected to transfer crude oil from the oil terminal in Neka to Jask.
Also in March, Torkan said part of the natural gas transferred to Jask will be exported to Oman, while the rest will feed petrochemical and steel industries in the coastal region.