Iran bypasses Hormuz Strait to export crude oil

Photo: IRAN'S PRESIDENTIAL OFFICE via EPA A handout picture provided by presidential office shows the 1000 km long Jask oil pipline as shown via video conference in Tehran, Iran, 22 July 2021.

Iran Thursday began exporting its new $2 billion exports terminal by loading 300,000 barrels on an oil tanker off the Sea of Oman, enabling the sanction-hit country to bypass the Strait of Hormuz for oil exports.

During a ceremony marking the inauguration of the project, President Hassan Rouhani called the plan “strategic.” Iranian state media described the move as an indication that sanctions imposed by the US were being defeated. Washington placed sanctions on Tehran after former US President Donald Trump pulled his country out of a nuclear deal between Iran and world powers.

The project, which began in 2019 and will cost some $2 billion in total, helps Iran lessen its dependency on its main oil export terminal on the Persian Gulf island of Kharg. The shortcut also reduces transportation and insurance expenses for oil tankers.

The facility currently allows the pumping of some 30,000 barrels of crude into tankers per hour, via a floating anchored offshore jetty, or single point mooring. It is located some 7 kilometers (4.7 miles) off the coast.

“82% of this project has been completed and so far more than 1.2 billion dollars have been spent on this,” Oil Minister ‌Jan Zanganeh said adding that Pars Oil and Gas Co. was in charge of loading and exporting crude oil from Jask.

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