Tehran (IP) – Iran's Oil Ministry and Mellat Bank have inked a memorandum of understanding (MoU) for constructing a strategic pipeline, transferring petroproducts to the east of the country.

Iran PressIran News: The ceremony was held in the presence of the Minister of Economic Affairs and Finance Ehsan Khandouzi and Oil Minister Javad Owji.

According to the MoU inked on Saturday, the pipeline transfers petroleum products from the southern part of the country,  Rafsanjan, to Birjand, Torbat-e Heydarieh, and Mashhad in the east and northeast.

By constructing the pipeline, sustainable supply of fuel needed in the east and northeast of the country, shortening the route of product transfer, reduction of fuel consumption and transportation costs, facilitation of the export of the petroproducts to the neighboring countries, the use of pipelines as an alternative to road transport, and the creation of east-northeast and south-northeast transport corridor will be achieved.

The transport capacity of petroleum products through this pipeline is 150,000 barrels per day, and the construction route of the pipeline takes a length of 948 km.

The initial estimation of the investment in this project is € 372 million.


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