TEHRAN, Iran and its southern neighbour Oman have agreed to finalise a cooperation pact on an offshore pipeline project, Oil Minister Bijan Zangeneh announced.
“The deal will be finalised in two stages: the first of which is planned to be concluded by the end of May and the second part is going to be signed by the end of June, Zanganeh said.
Zanganeh paid a visit to the sultanate last week to pursue talks with his Omani counterpart Mohammad bin Hamad al-Rumhi in Muscat.
In relevant remarks last month, Zangeneh announced that his ministry has signed an agreement with Oman that could take both countries closer to an ambitious project to jointly export liquefied natural gas (LNG) to international markets.
“I signed the agreement with Omani Oil Minister Mohammed bin Hamad al-Rumhi on the sidelines of last week’s meeting of the Organisation of the Petroleum Exporting Countries (OPEC),” Zangeneh said.
The Iranian oil minister reiterated that he expected it to expedite the preliminaries to start piping Iranian gas to Oman.
Iran has for long been discussing with Oman to produce LNG in its Qalhat liquefaction plant. The project involves piping gas from southern Iran to the Persian Gulf sultanate and liquefying it into LNG for shipments to international markets.
Several international energy giants, including Total and Shell have expressed interest in the project to install a subsea pipeline between the two countries. However, a series of hurdles, including the route of the pipeline and the pricing formula had so far obstructed its progress.
The total length of the pipeline for the project is estimated to be over 400 kilometers. The onshore part will cover 200 kilometers from Iran’s southern Assalouyeh gas zone to Kuhmobarak in the southern province of Hormuzgan.
The marine section between Iran and Sohar Port in the neighboring sultanate will be 200 kilometers.
Source: Nam News Network