Iran Plans to Boost Crude Storage Capacity

TEHRAN (FNA)- Iran is to start construction on four 1 million barrel oil storage tanks in Kharg Island next month as part of a long term strategy to double the country’s crude reserves.

Oil Terminals Company a subsidiary of the state run National Iranian Oil Company (NIOC) said that the new storage capacity will help Iran divert seasonal offshore oil into onshore storage facilities.

It said that construction is expected to take between 18th to 24th months but it is not known if Oil Terminals Company is hiring international contractors to help build the facility.

Mousa Souri MD of Oil Terminals Company said that “Construction of the tanks will enable the country to raise its storage capacity by 50%.”

He added that Iran’s current level of stored crude in existing tankers is at its lowest level in five years.