TEHRAN - Iran has expanded its crude oil storage capacity by two million barrels following the refurbishment and reactivation of two major storage tanks at the Kharg operational area.

According to the National Iranian Oil Company (NIOC), the overhaul and modernization of storage tanks No. 25 and 26 at the Kharg oil terminals were completed and officially inaugurated on Saturday, May 17, during a visit by NIOC Head Hamid Bovard to Kharg Island. Each tank has a capacity of one million barrels and has been brought back into service after undergoing extensive restoration.

Tank No. 26 was fully renovated through a comprehensive process that included the replacement of its roof and floor, installation of new roof drain and earthing systems, construction of containment basins, and the deployment of upgraded safety systems such as cooling, foam fire suppression, and geomembrane and geotextile layers. The tank was also completely repainted.

Tank No. 25 underwent descaling, floor plate replacement, roof repairs, cathodic protection system installation, roof drain redesign, repainting, basin construction, and safety system implementation before reentering service.

Bovard, who also serves as deputy oil minister, said the two-million-barrel increase in storage capacity significantly boosts Iran’s export flexibility, facilitates upstream production, and reduces costs associated with renting storage facilities. He called the initiative a valuable addition to the country’s oil sector.

He also highlighted the refurbishment of five decommissioned vessels, describing them as crucial assets for cargo handling and docking operations at Kharg Terminal. Bovard thanked all contributors to the project.

He emphasized that all work was carried out entirely by domestic contractors and engineers, demonstrating Iran’s strong technical and engineering capabilities in developing oil infrastructure.

Abbas Asadrouz, head of the Iranian Oil Terminals Company, called the commissioning of the two tanks a testament to the expertise of Iranian specialists and a key milestone in expanding the country’s strategic oil infrastructure.

“This project not only increases our national storage capacity but also represents the determination of local experts and a broader national commitment to advancing Iran’s oil industry,” Asadrouz said.

He underlined the strategic importance of expanding storage capacity, especially amid volatile energy markets, and said the project would help maintain stable exports, improve production flexibility, and strengthen Iran’s position in global markets.

Asadrouz also emphasized adherence to safety and environmental standards throughout the project, describing it as a clear example of implementing the principles of the “resistance economy” and supporting domestic production.

EF/