Bunkering Industry in Iran: Key Insights
- Geopolitical Significance:
- Iran’s strategic location makes it a central player in the global energy corridor. The country has access to the Caspian Sea in the north and borders the Persian Gulf and Sea of Oman in the south, both rich in oil and gas resources.
- The Strait of Hormuz, a vital maritime chokepoint, is used by transit ships and oil tankers traveling to Iraq, Kuwait, Saudi Arabia, UAE, Qatar, Bahrain, and Oman, making Iran a key hub in the energy trade.
- Refining Capacity & Bunkering Potential:
- Iran’s refining capacity is approximately 9 million barrels per day, ranking second in the Persian Gulf, behind Saudi Arabia.
- This large refining capacity enables the country to produce significant amounts of fuel oil, which is essential for the bunkering industry.
- Iran’s fuel oil is of high quality and is often used by bunkering hubs like the Port of Fujairah in the UAE, where it is blended with other fuels for supply to vessels.
- Investment Opportunities:
- Iran’s bunkering industry, especially in its coastal areas and islands like Kish and Qeshm, offers substantial growth potential due to its refining capacity and strategic location in the global energy supply chain.
