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Tehran, Muscat to sign gas deal

Oil&Gas Materials 12 March 2014 12:33 (UTC +04:00)

Baku, Azerbaijan, March 12

By Rahim Zamanov - Trend:

Iran and Oman will most likely sign a gas contract on March 12, according to Iranian Oil Minister Bijan Namdar Zanganeh, Iran's Mehr News Agency reported.

"Gas talks are on top of the agenda of President Rouhani's visit to Oman," he explained.

Iran-Oman pipeline is supposed to cross the Persian Gulf. Zanganeh has ordered the preliminary studies to be started. Iran's oil ministry also plans to assign a contractor to construct the pipeline. Iran plans to export gas from Kish and other southern gas fields to Oman.

Zanganeh said in September 2013 that Iran and Oman plan to sign a gas contract, based on which, Tehran is supposed to export 30 million cubic meters of gas per day to Muscat, the Mehr News Agency reported.

"Once the contract is signed, Iran will annually earn two billion dollars by exporting gas to Mascut," he added.

Zanganeh went on to note that Oman will use part of Iran's exported gas for domestic use, while exporting the rest.

Deputy Oil Minister Hamidreza Araqi said on March 11 that Iran is ready to transit Turkmen gas to the Persian Gulf states, Iran's Mehr News Agency reported.

"Tehran seeks to export its surplus gas to Persian Gulf countries as well," he said.

"Iran plans to export natural gas to other countries with reasonable price and steady supply," he said.

"Thanks to over 35 kilometers of national pipelines and 71 pressure boost facilities, Iran has the potential to export, transit, and barter natural gas," Iranian deputy minister noted.

Iran has the world's fourth-largest proved national reserves of oil - most of it cheap to produce - and is home to the biggest proved reserves of natural gas, some 18 percent of the global total.

However, the Mehr News Agency reported that the country's share of world's total gas exports is less than one per cent.

According to BP's latest yearly report, Iran's dried gas output is about 160 bcm, a little more than domestic consumption level.

Iran exported 7.5 bcm of gas to Turkey and imported 4.5 bcm of gas from Turkmenistan in 2012, according to BP's report.

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