Loading and transporting crude oil from Jask Oil and Gas Terminal in the Sea of Oman within a few days will bolster Iran’s bargaining power in global petroleum markets.
The Persian Gulf is somehow the most important point in producing and exporting oil and gas. The littoral states of the Persian Gulf produced around 30 million barrels per day in 2019, which is 32 percent of the world’s crude production.
Due to some political and economic risks, certain littoral states decided to find a alternative route far from the Persian Gulf’s Hormuz Strait in order to decrease their reliance on the strategic corridor. They have set up seven pipelines, but four out of them can become operational in short term.
They predicted that the pipelines can transfer 8.7 million barrels per day, but the transit of only 2.8 million barrels per day is applicable in current situation.
Iran had set up all its oil terminals (Kharg, Assaluyehand Lavan) in the Persian Gulf, which could cause serious problems for oil exports of the country when it came to irregular conditions such as Iraq-Iran war 1980 to 1988. So, the Iranian officials came to the conclusion that it would be better to construct a terminal out of the Persian Gulf waters.
***Iran oil export from Sea of Oman
Supreme Leader Ayatollah Seyyed Ali Khameneiemphasized that Makran coast should be developed and Iran should take the opportunity of reaching oceans through the Sea of Oman; therefore, the Iranians have made all efforts to pave the way for exporting crude oil from the Jask Oil and Gas Terminal.
The project of transferring oil from Goreh to Jask had been kicked off in 2018. The plan consists of a 1,000 kilometer-long pipeline, five oil pumping stations, two Pipeline Inspection Gauge (PIG), crude oil storage tanks in Jask and the Jask Oil and Gas Terminal. The first phase of the project is ready to be inaugurated and start exporting petroleum from the Sea of Oman.
It is worth mentioning that the cost of implementing the oil transferring project stands at two billion dollars, which is very cost-effective venture comparing similar projects in other countries such as the United Arab Emirates.
According to estimations, Iran is expected to earn 110 million dollars per annum thanks to the project.
The project will also enhance energy security because of the vicinity of the Jask Oil and Gas Terminal to important markets in India and China.