The strategic Pars pipeline agreement was signed Wednesday, between Mohammad Meshkinfam, managing director of the National Iranian Oil Engineering and Construction Company, and Abdolreza Abed, commander of Khatam al-Anbiya Construction Headquarters. The ceremony was attended by Mohammad-Sadeq Azimifar, managing director of the National Iranian Oil Refining and Distribution Company.

The 400-kilometer Pars pipeline will branch off from the main Bandar Abbas–Rafsanjan products pipeline at the Mehraaran pumping station in northwestern Hormozgan Province. It will pass through the cities of Darab, Fasa, and Sarvestan in Fars Province before terminating at the existing terminal near the Shiraz refinery.

With a diameter of 14 inches and a transfer capacity of about 73,000 barrels (12 million liters) per day, the project includes two pumping stations in Mehraaran and Fasa, a terminal in Shiraz, and an oil storage facility in Fasa with a capacity of 80 million liters.

The new Pars pipeline, developed with a 150 million-euro investment, aims to ensure the efficient supply and distribution of fuel across Fars Province. The National Iranian Oil Engineering and Construction Company will implement the project, while the Iranian Oil Pipelines and Telecommunications Company will operate it.

Replacing road transportation with pipeline transfer, increasing the share of pipeline shipments, and reducing road traffic are among the project’s key benefits. The new Pars pipeline is also expected to help cut fuel consumption and operational costs, reduce road hazards and environmental impacts, and expand petroleum storage capacity in Fars Province in line with passive defense considerations.