Iran, Oman to Finalize Gas Pipeline Negotiations

Iranian Minister of Petroleum Bijan Zangeneh said on Tuesday that discussions over how the project will be implemented will finalize by the end of February.

Speaking to reporters after a meeting with his Omani counterpart Mohammed bin Hamad Al Rumhy in Tehran on Tuesday, Zangeneh said the latest developments in the international oil markets, the OPEC output cut, cooperation of non-OPEC oil producers in the initiative and construction of a gas pipeline for exporting Iran’s gas to Oman were the meeting’s highlights. 

He lauded Oman, a non-OPEC producer of crude oil, for living up to its commitment for reducing its crude oil production in January.

The official further said that activities regarding deepwater mapping of the pipeline project will come to an end within the next few months and a tender will be held afterwards for selection of a developer for construction of the gasoduct.

Zangeneh added that representatives from several global energy companies had also participated in the meeting to present their proposals for carrying out the project. 

He said the companies included France’s Total, Royal/Dutch Shell, South Korea’s Korea Gas Corporation (KOGAS), Germany’s Uniper and Japan’s Mitsui.

Also on Tuesday, the National Iranian Oil Company (NIOC) and the Ministry of Oil and Gas of Oman signed a framework agreement for extending another one they had signed before. 

Based on an agreement signed in 2013, Iran will export 28 million cubic meters of gas to Oman per day for a period of 15 years through a pipeline that will go to the sultanate through the Persian Gulf.

Almost a third of the gas exported by Iran to Oman will be turned into liquefied natural gas (LNG) in the sultanate’s Qalhat plant, and the rest will be consumed domestically.

Iran will accordingly use the LNG produced at Qalhat plant for exports to European and Asian markets.In October, exports from Iran and Oman held talks with representatives of Shell, Total and Cogas in assessment of the gas project.