Iran to produce LNG in Oman eyeing retail market
Tehran, Iran, October 26
By Mehdi Sepahvand -- Trend:
Iran is going to turn some of its gas output into LNG in neighboring Oman as it intends to find a place in the retail market.
Iran has signed a gas contract with Oman in two phases of basic studies and maritime engineering to reach that aim, CEO of National Iranian Gas Export Company Alireza Kameli said.
He added part of the gas exported from Iran to Oman will be used for Oman's domestic use and the rest will be used to produce LNG for export, Mehr news agency reported Oct. 26.
The official pointed out that 25 percent of Oman's LNG production companies are idle at the moment that can be used for the purpose. Right now the idle capacity is about 1.5 million metric tons per year, Kameli said, adding the produced LNG will then be for Iran to sell.
The official noted that the Tehran-Muscat contract envisions the production of 10 billion cubic meters of LNG per year.
Oman had requested 2 billion cubic feet of gas per day from Iran in order to supply its LNG production and other industrial units.
On Sept. 21, Tehran and Muscat signed a contract to stretch a gas pipeline from Iran to Oman.
The onshore part stretches from Iran's city of Rudan for 200 kilometers to Kuhmobarak and the project is planned to be carried out in six months.
The offshore side stretches for another 200 kilometers from there to Port Sahar in Oman and is to be completed in five months.
The project follows an agreement between Tehran and Muscat whereby Iran should export 28 million cubic meters of gas per day to Oman for 15 years. The contract is worth $60 million.
Edited by CN