Iran plans to increase its crude oil storage capacity with the aim of circumventing the sanctions imposed on the country’s oil industry.

Iran plans to increase its crude oil storage capacity with the aim of circumventing the sanctions imposed on the country’s oil industry, Mehr News Agency reported Sunday.

The European Union formally imposed an oil embargo on Iran on January 23, but existing contracts will be honored until July 1.

Tehran Times quoted managing director of the National Iranian Oil Terminals Company Pirouz Mousavi as saying that the project to increase storage capacity at the Kharg Island oil terminal in the northern Persian Gulf is almost complete.

Storage capacity at Iran’s largest oil export terminal will be increased by one million barrels when the project is completed, Mousavi said.

According to Reuters news agency, storage capacity at Kharg Island was reported to be 16 million barrels as of mid-2008.

As envisaged in Iran’s 20-Year Outlook Plan (2005-2025), which is the country’s main blueprint for long-term sustainable growth, Iran should increase crude storage capacity at the Kharg Island oil terminal to 31 million barrels.