Iran will export 10bn cubic meters (bcm) of gas per year to Oman upon the complementation of Iran-Oman gas pipeline project, the IRIB news agency reported.
The two sides made the agreement during a visit by Iranian Oil Minister Bijan Zanganeh to Muscat on Thursday when he discussed energy ties with Omani Oil and Gas Minister Mohammed bin Hamad Al Rumhy.
Zanganeh said the Iran-Oman gas pipeline will have the capacity to carry 1bn cubic feet (bcf) of gas per day, adding that Oman, having a 1.5-2.5mn tonnes spare capacity to produce liquefied natural gas (LNG), would liquefy the imported gas and export it to other markets.
He said Iranian gas experts would continue the discussion with Oman by the next week.
Zanganeh put the value of Iran’s current gas contract with Oman at around $1.5 to $2bn.
The proposed pipeline is projected to transfer natural gas from Iran’s South Pars gas field to Oman’s Sohar port.
In March 2014, Iran and Oman signed a memorandum of understanding under which Iran will supply Oman with 10bcm of natural gas per year in a 25-year deal valued at around $60bn.
Since then, however, the project pipeline has stalled over the imposition of West-engineered sanctions against the Islamic Republic.
Rumhy, for his part, said Oman plans to expedite the completion of the Iran-Oman gas pipeline now that sanctions against Tehran have been lifted, the Sana news agency reported.
He said the pipeline’s capacity may even increase from the planned 1bcf to 2bcf per day because of high demand in the region.
The Omani minister announced that Oman will start receiving Iranian gas in 2019.
“Due to sanction, we had lots of difficulties to develop the pipeline project, but now we can order compressors and pipes, seek consultancy help, and discuss financing ways with banks,” Rumhy said.
The minister further expressed hope that the FEED (front-end engineering design) end in five months’ time and the work on EPC (engineering, procurement and construction) start by the end of the year or March 2017.
The EPC would approximately take two years, he added.
Gas imports from Iran would help Muscat to become a gas hub in the region, Rumhy further commented.
