TEHRAN - National Iranian Oil Refining and Distribution Company (NIORDC) signed a memorandum of understanding with Bank Mellat for cooperation in the construction of a strategic pipeline for transferring oil products in eastern provinces, Shana reported.

Valued at about €372 million the 948-kilometer-long pipeline is going to pass through Kerman, South Khorasan, and Khorasan Razavi provinces. The pipeline is projected to transmit 150,000 barrels per day (bpd) of petroleum products.

The MOU for the construction of the mentioned pipeline was signed on Saturday in a ceremony attended by senior officials including Oil Minister Javad Oji, Finance and Economic Minister Ehsan Khandouzi, NIORDC Head Jalil Salari, and Managing Director of Bank Mellat Reza Dolat-Abadi.

The construction of the mentioned pipeline, which is aimed at transmitting petroleum products from Rafsanjan in Kerman Province to Mashhad in Khorasan Razavi, is going to ensure a sustainable supply of fuel needed in the east and northeast provinces while shortening the transmission route, reducing fuel consumption and reducing transportation costs, as well as facilitating the export of oil products to eastern neighboring countries.

The project also includes the construction of two pump stations and three terminals.

The construction of this pipeline is significant as it would provide fuel to the country’s northeastern regions which are far away from the energy sources in the country.

National Iranian Oil Refining and Distribution Company is a subsidiary of the Iranian Oil Ministry. The company was established in 1991 and undertook to perform all operations relating to refining and distribution of oil products.

Although NIORDC was formed in the 1990s, the company has actually inherited 90 years of Iran’s oil industries' experiences in the fields of refining, transfer, and distribution of oil products, as well as engineering and construction of installations of oil industries.

EF/MA

Photo: NIORDC Head Jalil Salari (R) and Managing Director of Bank Mellat Reza Dolat-Abadi ink MOU documents as Oil Minister Javad Oji (2nd L) and Finance Minister Ehsan Khandouzi look upon.