Iran is close to completing a significant project that creates an alternative for it to continue exporting oil even if the Hormuz straits are shut down. This is an inland oil pipeline that will allow the country to bypass the troubled straits and continue exporting oil to Asian markets. The $2 billion project will allow the transportation of oil through a 1,000-kilometer pipeline from the Gora pumping stations located on the southwest coast near the border with Iraq to the Jask Seaport on the southeast coast of the country.
Iranian President Hassan Rouhani is scheduled to officially announce the launch of the pipeline tomorrow (Thursday). According to the Iranians, the oil pipeline could initially carry 300,000 barrels per day and when fully ready in October could carry 1 million barrels of oil per day. To the extent that the US removes oil sanctions over Iran, this pipeline will help Iran to increase exports and reduce the volume of tankers in Egypt.