Iran to turn Qeshm into Persian Gulf’s bunkering hub: Report

EghtesadOnline: The Saturday report by Fars news agency said Iran has been investing heavily in the Salakh port of Qeshm, which is only 5 miles (8 kilometers) from major shipping routes in the Persian Gulf, to encourage more ships to bunker at the port instead of sailing to the distant port of Fujairah.

The report said four major refineries are being constructed in Qeshm, each with a capacity of processing 140,000 barrels of oil per day, to increase the supply of bunker fuel, gasoline, and asphalt in the island.

It said that the island has also introduced a long-term project for the storage of 100 million barrels of oil.

The Salakh port, located to the south of Qeshm, is currently supplying 50,000 metric tons per month of bunker fuel to ships.

However, the report said authorities seek to increase the capacity to 750,000 per month.

Estimates suggest Iran has a tiny share of the bunkering revenues in the Persian Gulf, where the industry is believed to be worth more than $30 billion. That comes as more than 50,000 ships travel to the area each year for trade or energy transport purposes.

Measuring nearly 1,500 square kilometers in surface area, Qeshm is one of the largest islands in the world. It is located in the Strait of Hormuz, a strategic transit route which is responsible for nearly 20% of the global oil trade.

Iran has introduced development plans for its southern islands in recent years as part of efforts to increase economic activity in a relatively impoverished region, which is home to some of the world’s largest energy reserves.