Head of the National Iranian Gas Export Company said cooperation with Oman is developing slowly due to legal issues rooted in stringent regulations in both countries.
Mehran Amir-Moeini told ISNA that the two sides have resolved a major part of the discrepancies and what is left relates to internal rules and policies that are being discussed. He did not elaborate.
Iran signed an agreement with the Sultanate of Oman in 2013 to deliver 30 million cubic meters of gas per day for 15 years. The two sides hope deliveries will begin by 2020.
"The final framework that is being developed to help the two sides start the mega project will be signed soon," he said.
Giving a breakdown, the NIGEC chief said 15% of the natural gas that will be delivered is expected to be converted into liquefied natural gas in that country, yet it will be marketed by Iran. The rest will be sold to regional and international markets, especially India, either in the form of low-value added feedstock or high-value added petrochemical commodities. In a nutshell, Tehran will be able to expand its footprint in foreign markets via the Persian Gulf Arab state.
Asked about speculations that Oman could turn to extracting its own natural gas instead of importing from Iran in the unwanted delays continue, he said negotiations with Omani officials show the opposite is true.
Asked about the impact of US unilateral sanctions, Amir-Moeini noted, "The delay in finalizing the contract has nothing to do with the sanctions," but given the complex technical issues.
He also said that the sultanate is keen to cooperate with Iran in the project and will not be intimidated by US President Donald Trump's decisions to abandon the historic nuclear deal.
Plans call for extending the existing pipeline infrastructure in Iran by nearly 200 kilometers to supply gas from the port city of Asalouyeh in the Persian Gulf to Kouhmobarak in Hormozgan Province via the Oman Sea. From there, a subsea pipeline will be laid to Oman's Sohar Port.
The sultanate could import as much as 10 billion cubic meters a year of Iranian gas, or more than 30 mcm per day.
The subsea pipeline will circumvent the UAE’ maritime boundary "because the Emiratis do not want the pipeline to be laid in their territorial waters", according to Ali Kardor, the chief executive officer of the state-run National Iranian Oil Company.
"The pipeline may be laid 1,000 meters below the sea's surface instead of the shallower UAE waters at around 300 meters."
Kardor has been quoted as saying that Tehran is interested in Russian gas major Gazprom’s participation in the Iran-Oman gas pipeline.
Last November, Gazprom and NIOC signed a memorandum of understanding, which opened the way to a study into prospects of cooperation in the development of gas fields in Iran, gas transportation and financial issues.
Iran produces more than 800 million cubic meters of gas per day, but exports a small amount -- hardly 40 mcm/d -- to Turkey and Iraq.
The country holds the world's largest gas reserves after Russia.
