Addressing a ceremony to officially start construction of Goreh-Jask Pipeline project on Thursday, Mr. Zangeneh said the project would need $850 million in investment for completion.

He described the project as the most strategic project under Rouhani administration, adding it entails a 42-inch pipeline which would stretch over a 1000 kilometers from Goreh, Bushehr Province, to Fars Provinces to Hormuzgan to western Jask to Makran region, where the largest oil export terminal after Khark is being constructed.

He said that construction of many equipment used in the pipes were achieved for the first time in the project, adding that the use of special sheets with a very wide width was the most important equipment of this pipeline.

Deals had been struck with foreign providers of the sheets but failed to be enforced due to the sanctions; therefore, their supply was awarded to Mobarakeh Steel and Oxin Steel of Khuzestan, Mr. Zangeneh added.

According to the Minister of Petroleum, Mobarakeh Steel made the required slabs for the project and Khuzestan Oxin Steel Company made such wide sheets for the first time after many efforts.

Mr. Zangeneh noted 50 huge pumps with a capacity of 2.5 MW needed for the project, and said: "For the first time, a contract was signed with three domestic companies worth $50 million in this regard while no such pumps had been built in the country so far.

Underlining the brilliant performance of Mobarakeh Steel and Oxin Steel of Khuzestan companies, he said: Mobarakeh Steel has produced and delivered 320,000 tons of sheet metal from 420,000 tons, and Oxin Steel had offered 250,000 tons of sheets from 385,000 tons so far; pipe manufacturers have also produced 440 kilometers out of 1,000 kilometers so far, of which 350 kilometers have been transported to sites and are being welded and laid.

Zangeneh said that in addition to construction of the pumps, five pumping stations are also underway for the purposes of the project.

Moreover, he added, 20 half-million-tank storage tanks in Jask region were being built by the private sector under BOT contracts.

Jask export terminal, 40% Complete

The Minister of Petroleum stated that the physical progress of Jask Export Terminal was more than 40%, and specified: “The highest progress of the project took place in the last two months with 7% progress per month, which is a very valuable achievement and we hope this project will be completed this year and exports begin from this terminal this [calendar] year.”

He also stated that the Persian Gulf Star Refinery was also being connected to the pipeline to supply 600 to 700,000 barrels of gas condensate to the line. “Once this initiative is materialized, if necessary, gas condensate can be exported through Jask as well."

Jask export terminal is an important project and with its launch, in addition to building an export terminal for the country, a hub and development center will be created in the middle region of the Oman Sea.

"So far, about $300 million has been invested in the project, and another $850 million needs to be spent to complete it,” Zangeneh said. "Of course, there are obstacles and problems, some of which have been resolved and the remaining required funds will be provided through the capital market.”