Tehran, Muscat to Begin Talks on Using Oman's Spare LNG Capacity

Iran’s oil minister Bijan Zangeneh said on Thursday that Tehran will start within the next ten days talks on how to use Oman's unused LNG capacity.

The minister, who was on a trip to Oman, told state owned media agency Shana that the issue was discussed during a meeting with Omani counterpart Mohammed bin Hamad Al Rumhi

Zangeneh added that Oman’s unused LNG capacity which Iran could not use to export the product due to sanctions, will be utilized.

“National Iranian Gas Export Company and the Oman side will start negotiating with foreign firms to use the unused capacity,” he said.

Iran and Oman have been working on building a gas pipeline. The 400-kilometer pipeline, stretching from Iran to Oman is defined in two onshore and offshore sections. Land part of the gas pipeline extends for 200 kilometers from Rudan to Mobarak Mount in southern Hormozgan Province. The seabed section between Iran and Sohar Port in Oman will stretch for another 200 kilometers.

The study on the maritime section was handed over to Iranian Offshore Engineering and Construction Company (IOEC), and its contract was signed by Managing Director of the National Iranian Gas Exports Company (NIGEC) and Director General for Planning and Projects Evaluations of the Omani Ministry of Oil and Gas Saif bin Hamad al-Salmani.

The study on the land section was assigned to Pars Consulting Engineers (PCE). 

Iran and Oman in 2013 signed an initial deal under which Tehran will export 28 mcm/d of gas to its neighbour through the pipeline for 15 years.

Tehran wants to export some of the gas it will transport to Oman as LNG to markets in Asia