Investment Opportunities in Jask Port
Jask Port which is located off the Sea of Oman is among the major ports in Iran. Jask was important since ancient time. It was a marine base and also a center for commercial transactions.Situated 325 kilometers from Bandar Abbas, the provincial capital of Hormuzgan, Jask adjoins the Indian Ocean, overlooks the strategic Strait of Hormuz and is abuzz with trade and fishing. Over recent years, the name of Jask is bandied about as a future special energy zone and a free trade zone. Jask is expected to become an energy hub and serve as the second oil exports terminal to contribute to Iran’s economic boom. In the energy sector, this port can be of economic and commercial significance for Iran because of its specific potentialities. Jask enjoys economic, military and tourist potentialities. The strong points of Jask Port for the Islamic Republic of Iran include suitable coasts for petrochemical infrastructure, transit and shipping routes, Iranian Navy bases, access to high seas, the Indian Ocean and the Sea of Oman, geostrategic, geoeconomic and geopolitical situation and proximity to Oman and Persian Gulf states, as well as rich maritime and nutritive resources.The opportunities for investment in Jask Port include the possibility of building petrochemical plants, oil, gas and petrochemical refineries, exporting energy commodities, energy transit from Jask to other nations, building a second export terminal as alternative for emergency conditions, construction of a multipurpose port, tourist attraction facilities. Other advantages of Jask Port include the possibility of establishing regional cooperation organizations and different military, political and economic unions, and proximity to consumer markets like China. Given water shortages in Iran, power plants could be built in Makran to produce both water and electricity. Unlike the Persian Gulf, the Sea of Oman is connected to the Indian Ocean and therefore environmental damage is minimized.Establishment of a special oil and gas zone in Jask Port would be in line with the perspective and objectives of National Iranian Oil Company (NIOC). Transforming this port into such a zone would attract domestic and foreign investment into building oil storage facilities, jetties and refineries. That would also boost the potential of this region significantly.Energy Hub for Oil/Gas ExportsJask is a port with access to high seas and the Indian Ocean. It can turn into an energy hub for exporting a variety of oil, gas and petrochemical 32March 2019 Issue No. 81MONTHLY33InvestmentInvestmentproducts. Due to its location off the Sea of Oman and access to international trading routes, this port can provide bunkering services to vessels.Proximity to free zones and markets like Central Asia, China and India would give Jask a significant standing. Given global desire for liquefied natural gas (LNG), Jask has potential to build facilities for producing such supercooled gas. Due to its geopolitical conditions for diversifying export terminals outside the Persian Gulf region and in terms of crude oil storage facilities for tackling possible crises, this port can become Iran’s second energy terminal.Jask Port can establish links with oil-rich Central Asian nations. Also as an energy transit port, Jask is able to become an industrial hub dependent on downstream oil and gas industries.The plan for the development of Jask would provide such good advantages like transferring natural gas from the Iran Gas Trunkline 7 (IGAT7) to Jask, transferring crude oil form southern oil-rich zones from Goureh to Jask, transferring ethane from Assaluyeh to Jask, transit of natural gas from Central Asian nations via the Sarakhs pipeline to Jask, transit of crude oil from Central Asia and Caucasus via Neka to Jask, building a crude oil export terminal, natural gas exports from Jask to Oman, building an LNG refinery, petrochemical products, building oil refineries and strategic storage facilities. One of the major projects under way by administration of President Hassan Rouhani is to transfer crude oil from Goureh, which lies within the framework of achievements from the comprehensive development of the Jask energy zone. The Petroleum Ministry is studying construction of an oil pipeline stretching from Neka to Jask with capacity to handle 1 mb/d. If an energy hub is established in Jask, Iranian and foreign producers would be able to sell their latest products in the oil, gas, petrochemical, water, electricity and renewable energy sectors. That would also allow exchange of information and potentialities, establishment of communications between producers, manufacturers of equipment and consumers of equipment. When Iran’s gas goes to Jask Port, petrochemical plants would be founded there. Refinery AdvantagesBy transferring crude oil from Jask Port and building a refinery, it would be possible to produce liquefied petroleum gas (LPG), kerosene, gasoline, gasoil, fuel oil, asphalt, oil and bitumen among other petroleum products.Owing to its suitable location and proper sea depth for the berthing of oil tankers, Jask Port can become the most appropriate place for oil exports and loading. The objective behind the implementation of metallic storage facilities with high capacity is to provide facilities for storing 10-15 million barrels of light and heavy crude oil. Preliminary studies have been carried out for building a gas pipeline stretching from Jask Port to Oman. This pipeline is being built in coincidence with the construction of a gas pipeline going to Jask. The Petroleum Ministry has purchased 5,000 ha of land in Mount Mobarak, 60 kilometers from Jask to build jetties, refineries and storage facilities.