Gas export price to Oman not yet finalized, Iran says
Baku, Azerbaijan, Aug.5
By Fatih Karimov - Trend: Iran has said that the gas export price to Oman has not been yet finalized.
Ali Majedi, Iran's deputy oil minister for international affairs, said negotiations for exporting Iranian gas to Oman are underway and preliminary agreements have been made, Iran's Fars news agency reported on Aug. 5.
He declined further comment on the issue.
On March 12, Iran and Oman signed a contract under which the Islamic Republic will supply the Persian Gulf state with 10 billion cubic meters of natural gas per year.
Iranian Oil Minister Bijan Namdar Zanganeh said the gas will be pumped through a pipeline that will run all the way from the southern Iranian province of Hormuzganto Oman's Sohar port where it will join the nation's domestic natural gas network.
The project is expected to come on stream within three years, he said.
Oman will use some of the gas for its domestic consumption but part of the gas may be exported to neighboring countries through a joint marketing company, he said.
The pipeline and related infrastructure, estimated at around $1 billion, will be entirely funded by Oman, said Zanganeh, adding that the payback for Oman will come through revenues generated from the sale of the gas.
The Iranian oil minister further said the gas will come from Iran's giant South Pars gas field, adding that the pipeline would branch off one planned to export gas toPakistan.
Earlier in November 2013, Zanganeh said that Oman will be the Islamic Republic's marketing center for selling gas in the region.
Edited by CN