Talks are underway with Oman for exporting gas to the Arab nation, managing director the National Iranian Gas Export Company said Sunday.
Mehran Amir-Moeini said in the past weeks constructive talks have been held and in the next meeting with Omani officials a document will be finalized that should determine the framework of cooperation, ISNA reported.
The Iran-Oman gas pipeline project is expected to connect Iranian gas infrastructure to Omani consumers and LNG plants so that the sultanate can re-export the gas. According to projections, an estimated 28.3 million cubic meters of gas per day is to be exported to Oman through a direct pipeline bypassing the United Arab Emirates.
“When the deal is signed, the project will be completed in three years at a cost of $600-$800 million,” Amir-Moeini said, adding that 15% of the gas that will be delivered is expected to be converted into liquefied natural gas at the destination.
However, the majority of the gas (85%) will be sold in regional and international markets, especially India, either in the form of low-value added feedstock or high-value added petrochemicals.
Last week Oman Oil Minister Mohammed Rumhi said he was hopeful about Washington's approval of the project to build a gas pipeline from Iran to Oman. The US has imposed a new batch of tough economic sanctions on Iran targeting its key oil sector.
“We are still discussing and we are not sure what the American policy on the particular project is. We can negotiate a good deal to please everybody,” Rumhi was quoted as saying.
He also noted that the project is at a very advanced stage, and it would be disappointing to stop it.
Oman is a small producer and exporter of oil and gas in the Middle East. Under the leadership of Sultan Qaboos bin Said, the Persian Gulf state has maintained cordial relations with Iran both before and after the 1979 Islamic Revolution.
