A Third of Iranian Gas Supplies to Oman Will be Converted to LNG
About one third of Iran’s natural gas to be exported to Oman will be converted to LNG, Managing Director of the National Iranian Gas Company (NIGC) Alireza Kameli said.
“Iran has undertaken to pump 28 million cubic meters of gas per day to Oman and it is likely that about 25 to 30 percent will be allocated to LNG,” he told Shana about the negotiations held in Muscat on Thursday.
Iran will use the unused capacity of Oman’s LNG facilities to market and sell exported gas and pay the conversion fees, he said.
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.
"The value of the contract depends on the oil price. Nevertheless, with the current oil prices, the value of exporting 10 billion cubic meters a year will be around 1.5 to 2 billion dollars annually," Zangeneh 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.