TEHRAN July 17 (Shana)–Iranian Oil Pipelines and Telecommunication Company (IOPTC) has constructed the necessary infrastructure for , IOPTC chief said.
“The pipelines used for oil swap are technically ready,” Abbas-Ali Jaafari said.
“At present the pipeline destined for oil swap is fully ready and as soon as relevant officials give the go-ahead, swap operations will be done under proper circumstances,” he said.
Jaafari said crude oil is often fed into the pipelines to keep them active as long as swap operations are on hold.
“A halt in the pipeline activities may bring about corrosion due to corrosive substances or water,” he said.
He added that maintenance of pipelines while swap has been halted has been costly for IOPTC.
“Another consequence of halted oil swap in the country in the past years was that South-North Pipeline had to carry more oil. Given the longevity of these pipelines, that was worrying,” said Jaafari.
Iran started its oil swap with the Caspian Sea and Central Asian states in 1997.
Besides revenues and regional diplomacy, the oil swap project saves Iran the costs of carrying 500,000 bpd of oil from south to north of the country to feed Tehran, Arak and Tabriz oil refineries.
Analysts say Iran represents the best route for energy transfer in the region as this route is shorter and less costly than Russia, Turkey and China routes.
Iran plans to develop the coastal infrastructure at its northern port city of Neka, situated some 200 kilometers (124 miles) north of Tehran, and raise its oil swap capacity.
It has started the development of the offshore pool at Neka oil terminal to meet the needs of merchant shipping fleets and also raise the oil reception capacity of the site.
Iran imports oil from Central Asian countries to be refined at Tehran and Tabriz oil refineries and then delivers an equivalent amount of oil to potential buyers in the Persian Gulf.
The Iran Project is not responsible for the content of quoted articles.