23 January 2016 - 16:07
  • News ID: 253929
One Third of Iran Gas to Oman Slated for LNG

TEHRAN, Jan. 23 (Shana) – Managing Director of the National Iranian Gas Company (NIGC) Alireza Kameli said that about one third of Iran’s natural gas to be exported to Oman will be converted to liquefied natural gas (LNG).

“Iran has undertaken to pump 28 million cubic meters of gas per day to Oman and it is likely that about 25 to 30 percent will be allocated to LNG,” he told Shana about the negotiations held in Muscat on Thursday.

He said the pipeline project to carry Iran’s gas to Oman is under study in its sea section, and added, “It was decided that Iran will use the unused capacity of Oman’s LNG facilities to market and sell exported gas and pay the conversion fees.”

Petroleum Minister Bijan Zangeneh said on Thursday that Iran will start within the next ten days negotiations on how to use Oman's vacant LNG capacity.

"The visit which lasted few hours was made upon the invitation of the Omani minister of oil and gas, Mohammed bin Hamad Al Rumhi. Gas export, using vacant LNG capacity, and oil market were the main issues discussed during the meeting."

The pipeline will carry 1 billion cubic feet or 28 million cubic meters a day at the annual volume of 10 billion cubic meters which will be constructed jointly between the two countries.

"The value of the contract depends on the oil price. Nevertheless, with the current oil prices, the value of exporting 10 billion cubic meters a year will be around 1.5 to 2 billion dollars annually," Zangeneh added.

News ID 253929

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