Oman Plans to Produce LNG from Iranian Gas

Oman will most likely use part of Iranian natural gas to produce LNG, said Alireza Kameli managing director of National Iranian Gas Export Company Sunday.

Iran and Oman in 2013 signed a deal under which Tehran will export 28 mcm/d of gas to its neighbour through a subsea pipeline for 15 years.

Late last month, Tehran and Muscat signed contracts related to study of pipeline that will carry Iranian gas into Oman. The study on the maritime section was handed over to Iranian Offshore Engineering and Construction Company (IOEC), and its contract was signed by Managing Director of the National Iranian Gas Exports Company and Director General for Planning and Projects Evaluations of the Omani Ministry of Oil and Gas Saif bin Hamad al-Salmani.

The study on the land section was assigned to Pars Consulting Engineers (PCE).

Kameli pointed that two countries have also agreed that part of the transferred gas will be used by Oman and the rest will be devoted to LNG production, Mehr News Agency reported.

He stated that currently, about 25 percent of Omani LNG production capacity is idle.

“On the basis of the new agreement the commission costs of Omani LNG plants will be paid by Iran,” he said, adding that Iran will own the produced LNG being in charge of its marketing. Tehran has earlier said that one the most important reasons to export gas to Oman is that it provides opportunity to sell Iranian natural gas to other countries especially in Asia.

The 400-kilometer pipeline that will carry gas 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.