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Iranian Co. May Build Gas Pipeline to Oman

Iranian Co. May Build Gas Pipeline to Oman Iranian Co. May Build Gas Pipeline to Oman

Construction of the Iran-Oman gas pipeline will reportedly be undertaken by the Iranian Offshore Engineering and Construction Company, its deputy managing director, Rahim Tabrizi, said Tuesday.

A 200-km submarine pipeline will be laid from Roodan to Kooh Mobarak, in southern Hormozgan Province, from which point it will transfer Iranian gas to Sahar Port in the Sultanate of Oman, Tasnim News Agency reported.

Studies on both onshore and offshore sections of the pipeline will be undertaken concurrently to help avoid overlap or possible disruptions.

An Iranian consultant has also been appointed to conduct engineering and offshore feasibility studies for the strategic pipeline.

IOEC specializes in offshore EPC projects and is considered one of the regional pioneers in this area. Established in 1991, the company designs, procures, constructs, installs and provides services for a complete range of offshore surface and partial subsurface infrastructure for the offshore oil and gas industries. It is one of the largest integrated offshore and sub-sea pipe-laying companies in the Middle East.

In March 2014 Muscat and Tehran signed an agreement to export 10 billion cubic meters of gas per year to the neighboring Arab state in a deal that also involves building the submarine pipeline across the Persian Gulf at a cost of about $1 billion.

The accord, signed during President Hassan Rouhani’s visit to Muscat, is part of a memorandum of understanding between the two sides for the sale of Iranian gas to Oman from 2015 - a 25-year deal valued at around $60 billion.

Oman will reportedly use some of the gas to produce liquefied natural gas for its domestic consumption, but has suggested that half the gas will go to other markets including Japan, South Korea and India, through a joint marketing company to be set up at a later date.

Iran sits on the world’s largest gas reserves, according to the latest statistics compiled by BP.

However, the vast majority of Iran’s gas reserves are undeveloped. Despite the abundant reserves, Iran is yet a relatively minor and strictly regional exporter of natural gas via pipelines to three neighboring countries – Turkey, Armenia, and Azerbaijan.

There are also plans to expand gas exports to Iraq and Pakistan in the near future while in the long run Iran aims to commence gas exports to Europe.

 

Financialtribune.com