Iran’s state tanker company aims to add seven Very Large Crude Carriers (VLCCs) to its current fleet of 28 over the next three years, a top company official said on Monday, an investment of about $910 million.
The National Iranian Tanker Company (NITC) aims to grow its fleet to meet the growing demands of energy transportation, its chairman Mohammad Souri told Reuters by telephone.
“Based on current demands we would like to add as many tankers as possible, but in the next 2-3 years we are looking at at least seven VLCCs,” Souri said.
Shipbrokers estimate that a new VLCC would cost about $130 million.
NITC, a subsidiary of the National Iranian Oil Company, uses ships to transport its own crude and oil products, and also hires out its tankers.
Iran sits on 11% of the world’s oil reserves, and has the world’s second-largest gas reserves. It pumps out about 4 million barrels per day to world markets, with about 60% bound for Asia, and the remainder shipped to Europe.
Mounting tensions between Tehran and the West over Iran’s nuclear programme are unlikely to hold up expansion plans, said Souri.
Iran has ignored United Nations demands that it halt uranium enrichment, a process Western nations say Tehran is using to produce a nuclear bomb. Iran however insists that its aim is purely for power generation.
“I am not than much concerned with being able to finance, I am more concerned about volatile interest rates,” Souri said.
“Actually this week we are finalising a $200 million financing agreement in Korea,” Souri added, declining to provide further details.
NITC is currently exploring financing options with German, U.K. and Norwegian banks, Souri said.
The shipping entity, which is also responsible for tonnage requirements of several subsidiaries, is looking at placing orders for chemical tankers and dry bulk carriers, along with maintaining its focus on building its liquefied natural gas (LNG) carrier fleet.
The company is expecting to receive 13 supertankers from South Korean shipbuilders Hyundai Heavy Industries Co., Daewoo Shipbuilding and Marine Engineering Co. Ltd, Samsung Heavy Industries Co. and Hyundai-Samho Heavy Industries between 2007 and 2009.
Souri said that within the next three years it hopes to order at least 10 LNG tankers.
“This is the minimum requirement at the moment, it will all depend on the deals negotiated with the buyers and the destination of the cargo,” Souri added.
Iran has an estimated 970 trillion cubic feet in proven natural gas reserves.
Follow us on
