Tehran: A proposed $14bn oil pipeline project headed by the National Iranian Oil Company (NIOC) is expected to reduce shipping costs as tankers would no longer be required to transit through the Malacca Straits (pictured) when transporting oil from the Middle East or North Africa to Asian destinations.
According to news reports, the 320km pipeline project would entail the construction of a number of ports along both the eastern and western coasts of northern Malaysia as an oil refinery on the western coast to process the oil.
Although NIOC is yet to reveal the names of partners in the projects, several Malaysian and Chinese oil companies are believed to be interested in investing in the pipeline.
The pipeline is of particular importance as it would not only draw away Singaporean sea traffic to Malaysian ports, but also ensure that Asian countries have access to oil in case of political tension leading to a closure of the Malacca Straits. [17/05/07]
Copyright © 2024. All rights reserved. Seatrade, a trading name of Informa Markets (UK) Limited. Add Seatrade Maritime News to your Google News feed.
