A NEW pipeline and terminal located near Kharg Island in the Persian Gulf is scheduled to be completed by Iran by the end of the year to export a new grade of crude oil, according to the National Iranian Oil Company (NIOC).
Iran to finish terminal, pipeline by year-end to export new grade of crude oil A NEW pipeline and terminal located near Kharg Island in the Persian Gulf is scheduled to be completed by Iran by the end of the year to export a new grade of crude oil, according to the National Iranian Oil Company (NIOC). "As soon as (the pipeline and terminal are) completed, we will be able to segregate and export this crude," said NIOC international director Seyed Mohsen Ghamsari, according to Reuters. He said that initial production of the new grade crude was expected to be 300,000 barrels per day, meaning it will play a vital role in boosting Iran's production. According to Mr Ghamsari, Iran is producing 3.8 million barrels of crude per day and output could climb to four million barrels per day (bpd) in a few months. "We are ready to negotiate the level of production, as soon as we come back to the production before sanctions," Mr Ghamsari said, adding that output was a little higher than four million bpd before sanctions. Tehran's push to recover market share, lost under international sanctions, have reaped rewards in Asia, after July's crude imports rose 61 per cent year on year to 1.64 million bpd. However, it is anticipated that crude exports to Iran's major markets of Asia and Europe will stabilise this month, ending the significant increases recorded in the first half of the year, Reuters said. According to Mr Ghamsari, "there won't be significant change from July" in regards to Iran's crude exports to Asia. He predicts exports to Europe this month will climb to 500,000 bpd, representing an increase of 100,000 bpd compared to July.
