Iran, Oman Sign Export MoU

The oil ministers of Iran and Oman signed a framework agreement on a gas supply deal in Tehran February 7. It will need a 200-km gas pipeline, estimated to cost $1.5bn, which will be split equally between buyer and seller.

Iran’s oil minister Bijan Namdar Zanganeh said French Total and Anglo-Dutch Shell were willing to build it. Representatives of those two companies were present at the signature, along with Japanese Mitsui, South Korean Kogas and German Uniper. Iranian media have reported that Kogas is negotiating with Iran to study and construct the pipeline.

The 10bn m³/yr line would allow Iranian gas to be liquefied and exported further afield, using spare capacity at Oman’s LNG plants.

The pipeline route has not been selected, although it is agreed that it will not pass through UAE waters. According to Iran, the marine survey has been completed and evaluation of the obtained information is being undertaken. After receiving the results of studies, Iran will decide with the Omani side who will be the contractor.

“Instead of the shallower option at around 300 metres deep, the pipeline is to plunge close to 1,000 metres below the sea's surface. And it will be slightly shorter,” Oman's oil minister Mohammed bin Hamad Al Rumhi (pictured below) told Reuters.

(Credit: Oman LNG)

Oman's giant new gas project, the Khazzan field which is operated by BP, is due to start production late this year, but the output is dedicated to domestic energy projects, not for export. 

Iran desk