Expanding Exports: Iran Loads First Crude Cargo Outside the Persian Gulf

According to S&P Global, satellite images and local reports indicate that Iran has made its first-ever crude oil shipment from outside the Persian Gulf.

A Significant Expansion

By completing its first VLCC loading at the new Jask terminal in the Gulf of Oman, Iran has demonstrated its ability to export oil beyond the potential chokepoint of the Strait of Hormuz. This small yet significant expansion would ensure continued oil exports if the chokepoint were to be closed to tankers. It also diversifies the country's capabilities if an Israeli retaliatory attack targets its oil facilities.

Currently, 90 percent of Iran’s crude is loaded at the Kharg terminal west of Hormuz.

Heading to China 

The VLCC departing the new Jask terminal on the satellite images is the 318,000 DWT Dune. Dune was built in 2013 and is owned by the National Iranian Tanker Company.

The tanker ship can carry up to two million barrels of crude. She was loaded at a single buoy mooring. The images showing the VLCC departing Jask terminal were taken by the EU’s Sentinel 2 satellite, according to S&P Global. S&P Global indicated that the tanker’s last known position was east of Singapore on October 11, on its way to China.

Project Jask

Iran has been working for years to complete the Jask terminal, a $2 billion project that includes the construction of 20 storage tanks linked to a 1,000-kilometer pipeline from the Goureh field. However, technical issues, political challenges, and crude theft sabotage have delayed the completion of the terminal and the initial shipments from the single buoy mooring (SPM), according to S&P Global.

Recent satellite images reveal that 11 of the terminal's 20 crude storage tanks are completed. This allows for the storage of 5.5 million barrels.

According to Tradewinds, Iranian tanker loadings fell nearly 70 percent in the first ten days of October amid fears of Israeli retaliation for Iran’s missile attack. During this period, vessels in Iran’s key export terminal on Kharg Island were moved by the NITC. Since October 10, tracking data indicates an increase in tanker numbers at the Khargterminal. While shipments have resumed, they are currently occurring at a slower pace, according to Tradewinds.