The Iranian oil ministry has announced plans to build the new terminal to protect Iran's oil exports against potential problems in the Persian Gulf and to boost shipments of Caspian oil, and providing an alternative option for Iran's main export terminal at Kharg Island.Shana news website quoted the head of the Iranian Oil Terminals Company (IOTC), Seyyed Piruz Mousavi, as saying that the new terminal would be built at Jask Port, on the coast of the Gulf of Oman on the south coasts of Iran.
'In the event of any type of problem in exporting crude oil from the Kharg terminal, the new one can provide backup for exports,' Musavi said.The new terminal would be connected to the Caspian Sea port of Neka using a one million barrel a day pipeline, the report added.
According to Mousavi the terminal would have a storage capacity of 20 million barrels and could cost up $2.2 billion to build.
The announcement came just a few weeks after the United Arab Emirates said earlier this month they had completed work on a new strategic oil pipeline bypassing the Strait of Hormuz.
The idea to construct the Jask oil terminal was first initiated during President Rouhani's visit of Hormuzgan province and his Oil Minister Bijan Zangeneh welcomed the idea.
Mousavi earlier told IRNA that the plans for the construction of the new oil terminal are being pursued jointly by the government and the Petroleum Ministry and the National Iranian Oil Engineering and Construction Company (NIOEC) will implement it in accordance with the devised time schedule.
The required land for the construction of the new oil terminal is already purchased.
Jask Port is located at a 400 kilometer distance to the east side of Hormuzgan province capital city, Bandar Abbas.