Iran-Oman Gas Pipeline Under Study

Iran-Oman Gas Pipeline Under StudyIran-Oman Gas Pipeline Under Study

Iran is set to expand energy ties with Oman in the near future, managing director of the National Iranian Gas Export Company (NIGEC) said, Mehr News Agency reported on Sunday.

"The technical and engineering aspect of gas export to Oman via a submarine pipeline is under study," Alireza Kameli said, adding that the two sides will later negotiate on other details such as pricing formula.

According to plans, Oman will partly use Iranian gas to produce liquefied natural gas (LNG). Oman has suggested that half the gas transferred to the country will go to other markets including Japan, South Korea and India.

Last week, Hamidreza Araghi, managing director of the National Iranian Gas Company (NIGC) had said negotiations with Oman were underway by the oil ministry, yet no deal had been reached.

In 2013, Iran signed a memorandum of understating to lay a deep-sea pipeline for gas exports to the Sultanate of Oman within a short-time frame. Nonetheless, the proposed 260km pipeline between the two countries has yet to be built, which could take almost 3 years to be completed.

The agreement, estimated at $60 billion, calls for supply of 20 million cubic meters of natural gas per day to Oman for 25 years. According to plans, the pipeline will go through Hormozgan Province in south Iran to the city of Sohar in Oman.