Gas Exporting Countries in Favour of Price Based on Oil

Iran’s petroleum minister Bijan Namdar Zanganeh said on Sunday that most gas producing countries agree that gas prices should be set according to oil prices.

“Long-term contracts drawn up with formulas based on oil and gas price connection will continue,” the minister told a press conference after the end of the ministerial meeting of Gas Exporting Countries Forum (GECF) in Tehran, Shana News Agency reported.

Regarding gas exports to Oman, the minister said that the two parties expect that the gas exports contract will be finalized by March 2014.

“By exporting gas to Oman, we will be looking for a new market in this country and in the entire region and most probably a joint company will be established for marketing affairs and for the first time we will join the region’s retail market. We have reached agreement with Oman to that effect,” Shana quoted  Zanganeh as saying.

On Iran’s projected gas exports to Pakistan, Zanganeh said: “The bulk of activities for the implementation of gas exports contract to Pakistan has been done by Iran and big volume of gas is [ready for delivery] near the Pakistan border.”

He said Pakistan is required to build its own section of the pipeline. “In case Pakistan takes action to construct the pipeline on its soil, the project will be implemented.”

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