Iran starts studies for constructing gas pipeline to Oman

The Iranian oil minister has assigned a subsidiary of the Oil Ministry to conduct studies related to the construction of a pipeline for exporting natural gas to Oman, the Pana News Agency reported on February 15.

The two sides have reached agreements in their new round of talks in Tehran.

Last week, the National Iranian Gas Exports Company reported that negotiations were underway with the Omani side to finalize the gas export agreement.

The Sultanate of Oman is positioning itself to broker Iran's natural gas sales to the rest of the world, including Japan, if, and when, international sanctions over Tehran's nuclear ambitions are eased.

A preliminary accord was reached in November 2013, whereby the United States, Britain, Germany, France, China and Russia agreed to ease sanctions on Iran for six months if Tehran agrees to temporarily freeze its nuclear program.

In a move seen by some as using great foresight, the Sultan of Oman, Qaboos bin Said, signed a memorandum to lay an underwater pipeline across the Strait of Hormuz to Iran and to purchase $60 billion (6.3 trillion yen) worth of natural gas over 25 years from 2015.

The agreement was signed during a visit to Tehran in late August soon after Hassan Rouhani assumed Iran's presidency, and three months before Iran reached the preliminary sanctions-busting deal.

On November 4, 2013, Iranian Oil Minister Bijan Namdar Zanganeh said Oman will be the Islamic Republic's marketing center for selling gas in the region, Press TV reported.

"Negotiations with Oman have gone very well and we have completely agreed on fundamental issues," the Iranian oil minister said.

Zanganeh added that the two sides will secure a contract by the end of the Iranian calendar year (ending March 19, 2014) or at the beginning of the next year.

"We have not negotiated on the gas price," said the Iranian minister, adding, "We have agreed to transfer gas to Oman first and then look for market... in the region from that country."

ANN.Az