Iran said on Monday that it is on track to create a new oil terminal on Persian Gulf that would open a new export route for its crude and allow tankers to bypass the strategic Strait of Hormuz.
The National Iranian Oil Company signed a contract worth around $52 million on Monday with three local companies to supply 50 pumps for the pipeline project, according to Shana reporting Persian Gulf.
The pipeline will run from Bushehr Province to Bandar-e-Jask on the Sea of Oman, on the other side of the Strait of Hormuz.
“Construction of the Goreh-Jask pipeline and the crude oil export terminal at Jask port are among the priority plans of the Iranian Oil Ministry.
The approximately 1,000-km (620-mile) pipeline will bring oil from Goreh in Bushehr to Jask, making it strategically important as the country’s second-largest crude oil export terminal.
Jask will export its first crude within 18 months.
In September 2018, Iranian President Hassan Rouhani announced “a major part” of Iran’s exports would be shifted to Jask from the Kharg Island terminal.
He said the project would be completed by the end of his term in the summer of 2021.
To reach the oil terminal on Kharg Island, tankers must pass the Strait of Hormuz.