Iran Exports Oil Without Hormuz Strait Dependency Through Gureh-Jask Pipeline

TEHRAN (Iran News) According to a report by IRNA, Dehghani emphasized that the $2 billion Gureh-Jask pipeline, capable of transferring one million barrels of crude oil daily, was completed despite international sanctions and the absence of foreign contracts. “More than 50 first-time manufactured items were produced by our colleagues in the oil industry for this project,” he stated, underscoring Iran’s growing self-reliance. “This showcases the capabilities of our oil sector and should serve as a standard for evaluating future projects.”

The project, spanning 1,000 kilometers with a 42-inch sour service pipeline, includes five 25-megawatt pumping stations, loading facilities, nearly 300 kilometers of power transmission lines, and 11 40-kilometer electrical substations. Dehghani noted that its completion in less than two years—reaching 90% progress by July 2021—set a record for the swift execution of major oil projects. “Starting in mid-2019, we delivered oil to the coast by July 2021, creating an initial capacity of 350,000 barrels in the first phase,” he added.

Dehghani explained that foreign companies refused to supply critical components, particularly pipes, due to sanctions. “We deployed our workforce and linked various parts of the supply chain, connecting Mobarakeh Steel Company in Isfahan to the oil industry,” he said. This collaboration led to a technological leap, including the first sour service steel casting in Iran in early 2019. Over 95% of the project’s equipment and materials were sourced domestically, boosting local industries and reducing dependency on imports.”Iran Exports Oil”

“This project not only utilized internal capabilities but also fostered greater integration of domestic resources,” Dehghani remarked. He highlighted its most groundbreaking achievement: enabling Iran to export up to one million barrels of oil daily without navigating the Strait of Hormuz, a chokepoint often subject to geopolitical tensions.

Dehghani stressed that the Gureh-Jask pipeline demonstrates how large-scale projects can drive technological development and economic growth. “It directly contributes to GDP growth, yet we’ve failed to promote this success adequately,” he lamented, pointing to a lack of clear evaluation metrics. He urged that the project’s accomplishments be used as a model to maximize technological exploitation in future initiatives.

Despite its success, Dehghani acknowledged broader economic challenges. “According to Iran’s 20-year vision, we should lead the region in the oil industry, but we’ve fallen short,” he said. He argued that with defined annual growth targets, Iran’s economy could have surpassed $1.5 trillion, citing the need for better resource management, investment, and flexibility in decision-making. “Global economies grow sustainably through the right mix of resources, technology, capital, and management—areas where government control has created obstacles here,” he noted.

Dehghani identified the oil industry’s high investment demands as a key hurdle. “With 123 years of history, Iran’s oil sector is among the world’s largest, requiring $20-30 billion annually to reach optimal productivity,” he said. While the Gureh-Jask project overcame challenges like steel dependency through domestic production, broader issues—such as complex decision-making processes and inflexible policies—continue to hinder progress. “Regulatory bottlenecks have cost us critical opportunities,” he admitted.

Nevertheless, experts believe that even under economic constraints, focusing on internal strengths can accelerate growth. Dehghani concluded optimistically: “This project proves that with proper planning and reliance on domestic production, we can overcome many barriers. The efforts of Iranian engineers have even elevated our steel industry to meet oil sector needs.”

The Gureh-Jask pipeline stands as a testament to Iran’s resilience and innovation, offering a pathway to energy independence and economic advancement—if its lessons are heeded.