Oman-Iran gas pipeline faces obstacles

Business Materials 14 April 2015 12:59 (UTC +04:00)

Oman and Iran are yet to agree on the route of a 260km underwater pipeline to carry Iranian gas to Oman, Oman's Minister of Oil and Gas, Mohammed Al Rumhy, said on Monday, Gulf News reported.

The two countries reached an accord in March 2014 over the pipeline during a visit to Oman by Iranian President Hassan Rouhani. In 2013, after a memorandum of understanding (MoU) was signed in Tehran, Iranian Oil Minister Bijan Namdar Zanganeh said Iranian gas would start pumping to Oman in 2015.

"The first part is to agree on the route. Once we agree on the route we will move onto the second phase, which is the design of the pipeline itself," Al Rumhy said in Muscat at the ministry's annual media briefing.

A perceived obstacle to the pipeline is the price that Iran will sell its gas to Oman for; however, Al Rumhy said the two countries are yet to discuss prices with an agreement in place to discuss it "towards the end of the project."

"The ultimate goal from this side of the water is to build this as an infrastructure project. I think it's good for our energy security," Al Rumhy said.

"We'll deal with the price when we get that part over," he added.

Al Rumhy also said that Oman has not started marketing Iran gas. He said he believes the project "will see daylight."