Oil Refinery, Petrochemical Plant Construction Begins on Iran's Jask Port

“The aim is to help meet rising domestic demand and also augment exports,” IRNA quoted Ali Mohammad Bosaqzadeh as saying.

Using crude oil, the plant will produce gasoline, diesel, jet fuel and sulfur plus butadiene, polyethylene and propylene products and mono-ethylene glycol.

The company is planning to move its main oil export terminal from the Persian Gulf to the Sea of Oman, Financial Tribune reported.

“Currently, Kharg Island terminal, in Bushehr Province, is the main oil terminal in Iran handling almost 90% of crude exports, mainly from the Pars Special Energy Economic Zone. Oil export from Jask has begun and the island will soon handle larger volumes,” Bosaqzadeh added.

Construction of more oil terminals in Jask is also being discussed by the government-owned company.

Moving the main oil export terminal from Kharg to Bandar-e-Jask means Iranian oil tankers need not pass through the strategic but narrow Strait of Hormuz, which is used for oil exports and international shipping by Iran and other oil exporting countries in the Persian Gulf.

The Strait of Hormuz is the world’s most important chokepoint, with an oil flow of 18.5 million bpd in 2016.

Kharg Island terminal is located west of Assalouyeh in Bushehr, which is well-known for the PSEEZ. 

“Bandar-e-Jask is located 1,000km east of Assalouyeh and on the eastern flank of the Strait of Hormuz. With closer proximity to international markets, it can play a major role in reducing export costs,” Bosaqzadeh said.

Construction of the ammonia and urea units at Hengam Petrochemical Company, in Hengam Island in the same region, has made 50% progress, he said.

“The ammonia unit will annually produce 726,000 tons and nominal capacity of the urea unit is 155,000 tons,” he added.

Based in the PSEEZ, Hengam Petrochemical Company is being built over 25 hectares. It is estimated to cost $600 million and come on stream in 2021.