Iran Looks at Liquefaction in Oman

Iran wants to use spare liquefaction capacity in Oman to reach world markets. Currently, 23% of Oman’s 10.4-mn mt/yr capacity for LNG production is unused. Iran plans to use this capacity to export LNG in return for paying the costs of turning natural gas into LNG.

Iran has agreed to export 28mn m³/d of gas to Oman, which entails building a $1.5bn subsea pipeline. Most of that gas will be used for Oman's domestic needs and the rest – which works out at about 5mn m³/d – will be liquefied. 

Oman's foreign minister Yusuf bin Alawi met Iran’s oil minister Bijan Namdar Zanganeh in Tehran on February 21 and Alawi said after that feasibility studies for a planned pipeline to transfer Iranian gas to Oman will finish in the next six months, ISNA news agency reported.

Muscat has fully approved of details of the pipeline construction plan, he noted, explaining that his meeting with the Iranian oil minister was intended to boost bilateral cooperation in oil, gas, and petrochemical projects.

Iran has been accelerating the negotiations for gas export to Oman, but Oman has already managed to find alternative sources. 

BP and Oman Oil have signed a heads of agreement with the government of the sultanate to add 1,000 km² to the 2,700 km² license area of the Block 61 exploration and production sharing agreement.

Oman produces 85mn m³/d but after starting up both phases of the Khazzan field, that would go up by 50%. The first phase of Khazzan field is projected to become operational in 2017 to produce 28mn m³/d natural gas.

Iran desk