TEHRAN – Iran’s Tejarat Bank signed a memorandum of understanding (MOU) with National Iranian Oil Refining and Distribution Company (NIORDC) on Sunday to fund the project for constructing a pipeline to transfer oil and petroleum products from southern Hormozgan Province to Fars Province.

The MOU was signed in a ceremony attended by Oil Minister Javad Oji, Finance and Economic Affairs Minister Ehsan Khandouzi, NIORDC Head Jalil Salari, and Managing Director of Tejarat Bank Hadi Akhlaghi-Feyz, Shana reported.

As reported, the pipeline (known as Pars pipeline) extends over 400 kilometers from Mehravaran in Hormozgan Province to Shiraz city and is going to transfer 12 million liters of oil and petroleum products on a daily basis.

Optimal fuel distribution in Fars Province, using the pipeline as an alternative to road transportation of products, reducing traffic and fuel consumption, reducing operational costs, reducing road hazards and pollution, and increasing the storage volume of petroleum products in the mentioned province are among the goals of constructing this new pipeline.

NIORDC had previously signed an MOU with Bank Mellat in January for cooperation in the construction of a strategic pipeline for transferring oil products in eastern provinces.

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

According to Shana, 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 included the construction of two pump stations and three terminals.

EF/MA

Photo: Oil Minister Javad Oji (4th R) and Finance and Economic Affairs Minister Ehsan Khandouzi (2nd R) attend MOU signing ceremony in Tehran on Sunday