Pars pipeline project set to reduce reliance on road tankers
Deputy Oil Minister Mohammad Sadeq Azimifar said on Wednesday that Iran has launched construction of the Pars strategic pipeline in Fars Province — a €150 million project aimed at “reducing dependence on road fuel tankers and cutting transport costs” by several trillion tomans.
Speaking at a meeting on oil, gas and solar energy investment projects in the southern province of Fars, Azimifar said the 400-kilometer pipeline, connecting Mehrararan, Fasa and Shiraz, will have a daily capacity of 73,000 barrels and is expected to save the country more than 4 trillion tomans (around $36 million) per year.
“The Pars pipeline project marks a significant step in reducing reliance on road tankers and saving several thousand billion tomans in fuel transport costs,” he said, adding that its operation will cut the use of around 60 million liters of tanker fuel per year.
The construction contract for the Pars pipeline was signed between the National Iranian Oil Engineering and Construction Company and Khatam al-Anbiya Construction Headquarters on Wednesday, Shana reported. The contract is planned to be completed within 36 months.
Azimifar highlighted the government’s broader plan to strengthen petroleum transport infrastructure as Iran currently uses nearly 17,000 road tankers, about 3,000 rail tankers, and 15,000 kilometers of pipeline for the transfer of petroleum products.
“The biggest challenge in the transport sector is our dependence on road tankers and their high operational costs,” he said, stressing that expanding the pipeline network for fuel transportation remains one of the National Iranian Oil Refining and Distribution Company’s top priorities.
According to Azimifar, nearly 1,000 kilometers of crude oil and petroleum product pipelines have come online over the past year (began on March 21, 2024) with a total investment of around €800 million.