Petroleum Minister Bijan Zangeneh said on Thursday that Iran will start within the next ten days negotiations on how to use Oman's unused LNG capacity.
Having returned from a short visit to Muscat, he told Shana that during the meeting with Omani Oil and Gas Minister Mohammed bin Hamad Al Rumhi, both sides also exchanged views on the international crude oil market, IRNA reported on Jan.21.
'The visit which lasted few hours was made upon the invitation of the Omani minister of oil and gas. Gas export, using vacant LNG capacity, and oil market were the main issues discussed during the meeting.'
On exporting Iran's gas to Oman via pipeline, he said, 'It was agreed that a pipeline to carry 1 billion cubic feet or 28 million cubic meters a day at the annual volume of 10 billion cubic meters be constructed jointly between the two countries.'
'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.'
Saying that technical aspects of the pipeline were finalized during meeting, Zangeneh added that Oman unused LNG capacity which Iran could not use to export the product due to sanctions, will be utilized.
'Today it was decided that in the first possible time, which I think will be the next 10 days, National Iranian Gas Export Company and the Oman side will start negotiating with the foreign firms to use the unused capacity.'
'We also discussed financing the project,' said the Iranian minister.
Regarding the talks on oil markets in Muscat, Zangeneh said Oman has always been ready to cooperate with OPEC.
'However, and unfortunately, OPEC lacked any clear stand in this regard and there is difference among the members on how to manage the market,' he said.