CEO: New Pipeline to Bandar Abbas Refinery to Save $80mn Annually

Date: 01 January 2025 - 21:53

News ID: ۱۳۵۳۷۶

TEHRAN – The CEO of the National Iranian Oil Engineering and Construction Company Muhammad Meshkinfam  has announced that the newly operational pipeline supplying feedstock from the Goreh-Jask main pipeline to the Bandar Abbas refinery will save $80 million annually by replacing sea transportation with land transportation.
Meshkinfam detailed the project, explaining that its contract was awarded to Maroon Mechanic Company in November 2020 and completed in 15 months.
The pipeline branches off at kilometer 737 of the Goreh-Jask pipeline and connects to the Bandar Abbas refinery.
Meshkinfam highlighted an investment of approximately €32 million by the National Iranian Oil Company (NIOC) for this project.
He noted that the National Iranian Oil Engineering and Construction Company acted as the executing client in collaboration with Maroon Mechanic as the contractor.
The first crude oil transfer to the refinery’s storage tanks occurred on December 25, 2024.
The CEO emphasized the role of local companies, stating, “All the pipeline materials were 100% domestically produced.
Steel slabs were manufactured by Mobarakeh Steel Company, converted into plates at Oxin Steel, and finally into pipes at Safa Rolling and Pipe Mills Company. Three domestic companies were instrumental in the production process.”
The pipeline ensures stable feedstock supply to the Bandar Abbas refinery, overcoming challenges posed by maritime transportation and weather conditions. Switching to land-based transport reduces costs and enhances supply reliability.
Meshkinfam acknowledged challenges during the project, including delays in pipe procurement and land acquisition.
Despite these obstacles, priority was given to using domestic products, even though importing materials could have been faster. The pipes meet NACE standards, marking a significant achievement.
The pipeline has a daily transfer capacity of 300,000 barrels, with crude oil continuously transported to the refinery’s storage tanks.
The project directly created 320 jobs and contributes to the $80 million annual savings.
Meshkinfam also provided updates on other projects, stating that 1,037 kilometers of pipeline were scheduled for commissioning in the second half of this Iranian year (started Sept. 22, 2024).
To date, 460 kilometers of the Bandar Abbas-Rafsanjan pipeline and a 37-kilometer pipeline to the Bandar Abbas refinery have been inaugurated. Additionally, a 220-kilometer, 14-inch pipeline and a 37-kilometer, 10-inch pipeline connecting Urmia to Tabriz are ready for operation. The 340-kilometer Sabzevar-Rey pipeline is expected to be completed by late February.