Iran has recently announced it's expanding its network of domestic oil storage facilities. Oil storage capacity will rise to 100 million barrels up to the end of fifth five year development plan in 2015, managing director of the Iranian Oil Terminals Company (IOTC), Seyyed Pirouz Mousavi, said. One really should ask what prompted this- a genuine need, or if this was caused by embargoes against Iran.

According to; Mousavi said 70 percent of the additional oil storage capacity will be created by Petroleum Engineering and Development Company (PEDEC), National Iranian Offshore Oil Company (NIOOC) and National Iranian South Oil Company (NISOC) while IOTC will be responsible for the remaining 30 percent.

The official referred to an underway plan for building an oil terminal in Jusk Port, on the shore of Oman Sea, south of Iran, with oil storage capacity of 20 million barrels adding simultaneous with rising storage capacity in Neka Port, on Caspian Sea shore, and construction of Neka-Jusk oil pipeline, there would the possibility to transfer one million barrels of oil from north to south of Iran on a daily basis which in turn will facilitate oil swaps.

According to the official, construction of Jusk oil terminal will strengthen Islamic Republic of Iran’s position as an exporting country adding the terminal will replace Kharg oil terminal for exporting crude oil if necessary.