KOGAS Could Bag Iran-Oman Gas Pipeline Contract

Korea Gas Corporation (KOGAS) could bag the contract to build the Iran-Oman gas pipeline, Pluse, a Korean news portal, reported Wednesday.

According to the news report, South Korean and Iranian authorities are in talks over the possibility that KOGAS may lead the project. Project owners and KOGAS could sign either a memorandum of understanding or a framework agreement in April or May, Pulse reported.

The 400-kilometer pipeline, stretching from Iran to Oman is defined in two onshore and offshore sections. Land part of the gas pipeline extends for 200 kilometers from Rudan to Mobarak Mount in southern Hormozgan province. The seabed section between Iran and Sohar Port in Oman will stretch for another 200 kilometers.

The study on the maritime section was handed over to Iranian Offshore Engineering and Construction Company (IOEC). The study on the land section was assigned to Pars Consulting Engineers (PCE).

According to Pulse, Korea seeks its role in the construction of a deep-sea pipeline in the strait, which is believed to be the most challenging in technology. The construction is estimated to cost $1.5 billion.

Studies on Iran-Oman undersea gas pipeline is expected be complete by the middle of this year.

Iran is interested in exporting some amount of gas it will supply to Oman to Asia and Europe by using latter’s spare LNG capacity.