Iran, Oman Finalize Gas Pipeline Route

Date: 02 April 2016 - 20:57

News ID: ۲۵۱۱۵

TEHRAN (FNA) - Tehran and Muscat finalized the route for exports of Iran’s gas to Oman after studying four possible paths.
Iran will export its gas to Oman through a 176-kilometer gas pipeline and it could plunge as deep as 290 meters from the sea surface before reaching Oman’s shores.
Iran signed a contract to export gas to Oman in 2013. The value of the contract was $60 billion for the duration of 25 years.
Iranian Offshore Engineering and Construction Company will construct the gas pipeline under the seabed.
The construction of the subsea pipeline is estimated to cost $1.5 billion.
Iran and Oman have signed basic agreements based on which Iran will export a daily amount of 28 million cubic meters of gas to Oman.
Almost a third of the gas will be used in spare liquefaction facilities of Oman’s Qalhat plant and the rest will be consumed in the Persian Gulf sultanate’s domestic market. Iran will accordingly use the LNG produced for exports to European and Asian markets.
The Qalhat plant has the capacity to liquefy 10.4 million tons per annum of LNG. Yet, only 7.9 million tons were exported in 2014 from it to international markets, as the priority was given to meeting domestic gas requirements.
The Iranian Offshore Engineering and Construction Company (IOEC) has completed drafting desk study of the Iran-Oman gas pipeline and started producing basic engineering documents related to the land part of the project.
The company announced that it held KOM meetings with contractors and reviewed their technical proposals on survey operations to finalize the route for laying the pipeline.
A South Korean company had voiced its readiness to carry out the offshore pipeline work of the project and has even told Iran that it is ready to fund the whole operations, itself.