According to Iran’s Oil Minister Bijan Zangeneh, Iran is building an oil pipeline to the port of Jask, just outside the Strait of Hormuz. The project is going to cost Iran around $1.8 billion.
Around $700 million of the investment will be used to develop the port terminal at Jask, on the eastern side of Strait of Hormuz, the only sea passage from the Arabian Gulf to the open ocean and also one of the world’s most strategically important choke points.
“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,” Oil Minister Bijan Zangeneh tweeted.
He also revealed that Iran is planning to build two refineries as well as petrochemical facilities in the region.
According to reports, the Goureh-Jask crude oil pipeline developed by Iran will be 1,100 kilometres long with the capacity to transfer 1 million bpd of crude oil from the Goureh oil terminal in the northwest to the Jask region on the Sea of Oman. After the pipeline is fully functional, Iran will be able to bypass the Strait of Hormuz.
The project is expected to be completed by March 2021.
Last month, Iran handed out contracts worth $48 million to three domestic engineering firms to develop giant pumping devices for the oil pipeline project. The three firms will deliver a total of 50 pumps and provide maintenance services for five years.
Earlier this year, Iran threatened to close the Strait of Hormuz after the US re-imposed sanctions on its oil exports.