Iran plans to sidestep Hormuz with new terminal

Iran\'s state-controlled oil terminals firm has announced plans to build a new export terminal outside of the strategic Strait of Hormuz, it was reported. According to official Iranian news agency Shana, the Iranian Oil Terminals Company will build the new facility on the Gulf of Oman at Bandar Jask. In light of recent political tensions with neighbouring Arab states, the new terminal would allow the Islamic Republic to avoid funnelling all of its oil through Hormuz in the event of any supply issues in the Arabian Gulf. It is also expected to increase shipments of Caspian oil, said managing director of IOTC, Pirouz Mousavi. The terminal would be connected to the Caspian Sea port of Neka using a 1m barrel a day pipeline, and it will provide Iran with more options in terms of exporting in the gulf. No details were provided of the terminal\'s expected capacity, development cost or completion date. Separately, Iran\'s Rostam Qasemi said that Iran is seeking to ramp up its oil exports to 1.5m bpd by 2016. According to statistics from the Organisation of Petroleum Exporting Countries (OPEC), the country\'s output stood at 3.758m bpd at the end of April 2012. In recent month\'s the Iranian oil industry has been rattled by US and EU-led sanctions on imports of the Islamic Republic\'s petroleum. The sanctions have led Iran to on more than one occasion threaten to blockade the Strait of Hormuz, which is used for the more than a third of the world\'s seaborne oil trade.