First crude exports expected from Iran's east coast Jask terminal - IRNA

Quantum Commodity Intelligence – Iran is planning to export the first crude oil cargo from the Jask terminal in south eastern Iran, the country's state-owned Islamic Republic News Agency (IRNA) has reported, citing a senior port official this weekend.

The new terminal is strategically situated on the Gulf of Oman, offering crude oil tankers direct access to the Indian Ocean and bypassing the need to navigate the busy Strait of Hormuz.

"The first vessel has arrived in the Jask region and we expect operations to load heavy crude to start Monday noon," said Vahid Maleki, director of the Jask Oil Terminal (JOT).

Iran, however, remains under US sanctions and talks are currently on hold until the new Iranian government takes power in August.

JOT is expected to reduce pressure on the waterway that sits between Oman and Iran, through which, according to US Energy Information Administration figures, around 21% of global petroleum liquids consumption transited in 2018.

The terminal is expected to save vessel charters several days of sailing time compared to Iran's primary export terminal Kharg Island.

Bandar-e-Jask Port is located in Kooh Mobarak, situated about 70 km west of the port town of Jask in the country's southeast.

It will receive crude oil pumped from an oil field further along the Middle East Gulf coast in Goreh via a 1000km cross-country pipeline.

Pumping operations on the Goreh-Jask pipeline reportedly began in late May and its oil is estimated to take under 30 days to arrive at the terminal.