The Iranian Oil Terminals Company (IOTC) is to increase its oil swap capacity with the construction of new oil storage tanks in Neka Port, Iran.
Engineering companies can now bid for the contract to build three 150,000-barrel oil storage tanks, which will increase IOTC’s oil swap capacity to 1.5 million barrels a day. The company hopes for the tanks to be completed in the near future.
Ramping up oil swap volume will be done in two phases; phase one will reach 500 barrels, with phase two bringing it to 1.5 million barrels.
IOTC currently swaps approximately 20,000 barrels a day of oil, however this differs throughout the year.
IOTC has already signed some oil swap contracts with regions bordering the Caspian Sea. These agreements will see the oil taken from Neka Port using the Caspian Sea’s shore and delivered to Kharg Island in the Persian Gulf.