The Jask oil terminal and pipeline project is being developed along the Sea of Oman near Jask port in the southern Hormozgan Province, Iran. Total investment is estimated to be more than $2bn.
The project includes construction of an oil terminal and crude oil pipeline named Goureh-Jask. It is being developed by the Iranian Petroleum Ministry as part of Jask port development and to deliver crude oil from Goreh, Bushehr, to southern Iran.
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National Iranian Oil Company’s (NIOC) subsidiary Petroleum Engineering and Development Company (PEDEC), along with domestic firm Petro Omid Asia and Omid Investment Management Group, will develop the project on an 18-year build-operate-transfer (BOT) basis over the next three years.
The project is expected to be completed by 2021. Ownership of the facility will be transferred to the NIOC after the 18-year period.
Crude oil storage tanks for the Jask oil terminal are being constructed with an initial investment of €200m ($228.3m), while the Goureh-Jask crude oil pipeline is being developed with an investment of IRR45 trillion ($1.07bn approximately).
Jask crude oil terminal details
The terminal will be developed within the 5,000 acres of coastal land owned by NIOC, located 65km west of Jask near Mubarak Mount. It will include 20 floating roof metal storage tanks with a capacity of 500,000 barrels each.
Crude oil storage tanks are being constructed with ten million barrels of storage in the first phase. Future expansions are planned to increase the terminal storage capacity to more than 30 million barrels.
The terminal will also include loading and unloading wharves, offshore facilities including three single-point mooring (SPM), and other infrastructure for import/export oil.
Terminal construction costs are planned to be met by leasing the storage tanks.
Goureh-Jask crude oil pipeline details
The Goureh-Jask crude oil pipeline will be 1,100km-long and have a diameter of 46in. It will be laid from Goureh oil terminal in the north-west Bushehr Province to Mobarak Mount in the western Jask region along the Sea of Oman.
It will have a transfer capacity of one million barrels a day of light, heavy, and ultra-heavy crude oil.
Crude oil will be transferred from West Karoun to tanks for further storage and exports. The project also comprises the development of five pumping facilities.
The pipeline will be divided into four sections for the purpose of construction, with each section having a separate engineering, procurement and construction contractor.
Benefits of the Jask oil terminal and pipeline project
Construction of Jask oil terminal will reduce the journey distance for tankers. As ships can enter the Jask port without entering Persian waters, the terminal is set to become the centre of Iran’s oil and gas import and export.
Financing
The project will be developed with financial assistance from Russia. Iranian firm Zalvand Company is the co-investor in the project, along with Russian company RAO Rosneftegazstroy and Germany-based engineering services company Marcon Ingenieurgesellschaft.
Russian financial services company Sberbank will be the financial consultant and potential creditor for the project based on supply and services along with Vnesheconombank.
Contractors involved with Jask oil terminal and pipeline project
RAO Rosneftegazstroy and Marcon are responsible for engineering, project management and equipment supply for the project, while Netherlands-based Archirodon Group will be responsible for the construction of coastal and sea facilities.
Soroush Energy Company is the consultant for the Goureh-Jask crude oil pipeline, while Iranian Oil Terminals Company is responsible for the design and execution of the terminal project.
