Tehran, March 13, IRNA � Oman will pay for the entire cost of the pipeline and related infrastructure and will be compensated for its investment through revenues generated from the sale of the gas, Iran?s Oil Minister Bizhan Namdar Zangeneh said Thursday in Muscat.
There is a ready pipeline for linking Suhar port to the continuation of Dolphin pipeline inside the east of Oman to carry the gas through central regions to Sur Port where Oman?s LNG plants are located.

As Iran?s Oil Minister Bizhan Namdar Zangeneh announced the total pipeline length will be 350 km, of which of 200 km will be laid undersea, the Trend News Agency reported.

Iran planned to open a branch from the seventh cross-country gas pipeline which was laid from Iran?s South Pars oil and gas field to Iranshahr City and this branch will link to Oman?s Suhar (or Sohar) port via the undersea pipeline.

After two gas export contracts with Iraq to sell daily 45 million cubic meters (mcmpd) of natural gas, Tehran sealed a deal with Muscat to export 30 mcmpd of natural gas on March 12.

It?s expected the deal be implemented in three years.

Iran holds 18 percent of global gas reserves, amounted at 33.6 tcm and produces 575 mcmpd of gas, approximately equals with domestic consumption level.

However, the country is also expected to launch five phases of giant South Pars with 180 mcmpd of gas production capacity until 2017. The current production level of South Pars is about 300 mcmpd of gross gas, which of above 200 mcmpd is refined.

During Iranian President Hassan Rouhani?s visit to Oman, three gas contracts were signed, including the construction of 200-km undersea pipeline with worth $1 billion and a 25-year gas export deal valued at around $60 billion.

The parties will establish a joint company for selling gas, providing an opportunity for Iran to enter the Omani retail gas market with 10 bcm of gas per annum.

The mentioned pipeline would put the end on Qatar?s gas export monopoly to Oman.

By IRNA

 

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