Baku, Azerbaijan, April 12
By Khalid Kazimov - Trend:
Despite slow progress in Iran-Oman gas negotiations, Tehran and Muscat have dealt a new agreement in the gas retail market.
Accordingly, after the two sides make their final agreement on the pricing formula, part of Iran's export gas to Oman will go into LNG production factories, Mehr news agency reported April 12.
Iran National Gas Export Company CEO Alireza Kameli said that in the near future a consultant will be chosen to carry out basic engineering research and maritime issues related to gas export to Oman.
He pointed out that through the agreement, Iranian gas will be turned into LNG in Oman and then exported by Iran.
Iran has two gas trade deals with Iraq, one agreement with Pakistan and one memorandum of understanding with Oman that add up to a total of 120 mcm/d of natural gas exported to these countries. Iran is evaluating other markets like Kuwait, UAE, Saudi Arabia and Europe.
The MoU, signed between Tehran and Muscat two years ago, requires the two sides to start stretching the Iran-Oman pipeline.
Iran would export 10 billion cubic meters of gas to Oman per year, according to the agreement.
Based on the 2013 agreement, Iran would be providing Oman with 20 million cubic meters of gas per day for 25 years. The contract's value will be about $60 billion.