Iran added 2 million barrels of crude oil storage capacity at its Kharg Island export terminal, effective May 17, oil ministry news service Shana reported.
Tanks 25 and 26 with 1 million barrels of storage capacity each were put back in operation after refurbishment, it said. Iran’s oil infrastructure has deteriorated due to a lack of investment, partly due to international sanctions on its energy industry.
“Increasing storage capacity particularly under the complicated energy market situation is a strategic advantage,” Hamid Bovard, managing director of the National Iranian Oil Co. said, according to Shana.
“Kharg is not only an oil exports terminal. The facilities are provided here for processing oil from three big [offshore] fields of Abouzar, Forouzan and Doroud in this area,” Bovard said.
Kharg Island jetties handle more than 90% of the OPEC member’s crude.
In 2024, Iran announced that eight new crude storage terminals, each with 500,000 barrels of capacity, were ready for use at the Jask export terminal, while storage capacity to hold 7 million barrels of crude and products was added at Qeshm Island, according to a September 2024 report by S&P Global Commodity Insights.
The same year, Iran’s authorities announced a package to invest $34 billion in the country’s energy infrastructure across more than 100 different projects in the coming years, including projects to add 18 million more barrels of oil storage capacity.
As of 2023, Kharg Island had crude oil storage capacity of 4.5 million cubic meters (28.3 million barrels), according to the report. The country’s two other major crude export terminals had capacity of 700,000 cu m at Sirri Island and 900,000 cu m at Lavan Island.
The total oil products storage capacity was estimated at 11.5 million cu m.