Iran, UAE Ink New CNG Deal

Iran has inked a preliminary agreement with UAE to supply compressed natural gas (CNG).

According to deputy head of the National Iranian Oil Refining and Distribution Company Mansour Riahi the gas will be transported on board CNG container, reported Mehr News Thursday.

Iran’s natural gas will be condensed in Assaluyeh on the Persian Gulf coast and carried by 40-foot carrier ships, Mehr News added.

Riahi further stated that a preliminary agreement for sale of CNG has also been signed with Pakistan but implementation will take time.

According to Press TV, Iran and the UAE already have a gas deal but it has run into trouble amid claims of kickbacks and other corruption charges.

The deal with UAE’s Crescent Petroleum was signed in 2001 for exports of 17 million cubic meter of gas per day from Iran’s Salman field in the Persian Gulf for 25 years. 

Critics of the deal maintain that the price agreed is 14 times below the market value, Press TV added.