Iran, Oman Sign Initial Agreement on Underseas Gas Pipeline

Muscat and Tehran inked initial agreement on Wednesday to build a $1 billion submarine pipeline which will supply gas Iranian gas to Oman, reports news agency AFP.

The agreement was reached on the first day of a visit by Iranian President Hassan Rouhani to Oman.

Iran and Oman signed a memorandum of understanding in 2009 to build a 200 km undersea pipeline. Last year, the two countries inked a gas supply deal where Iran would supply gas to Oman for 25 years via undersea pipeline. The deal has been valued at about $60 billion.

The proposed pipeline is expected to be complete by the end of 2017.

Both parties will begin technical and feasibility studies of the project, including deciding on the path of the pipeline, indicating that it might connect to Sohar industrial port in northern Oman, adds AFP.

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