Under an agreement signed between Iran and Oman, gas export to the Arab neighboring country will start in less than two years, Iranian Oil Minster Bijan Namdar Zanganeh said.
Zanganeh said gas contracts are mainly singed for a 25 year period adding total value of the exports will hit 60 billion dollars considering today natural gas prices.
Zanganeh and his Omani counterpart Mohammed bin Hamad Al Rumhy signed an agreement on gas export from Iran to the neighboring country as part of an Omani high ranking delegation visit to Iran headed by Oman ruler Sultan Qaboos.
I have been delegated to choose an eligible Iranian consultant to examine issues like technical and economic feasibility of gas pipeline project as well as determination of its route and the next steps will be taken after announcing the result of studies, Zanganeh told Shana.
He said construction of the planned pipeline, its length and the various possible routes will be studied very quickly and pipe laying operations will start soon after a final decision made on the final route.
"We also discussed issues like financing the gas pipeline project, everything is transparent and we can start implementation of the project; mainly because top executives of the two countries insist that the project should be implemented as soon as possible," zanganeh noted.
He said that the gas transfer deal with Oman was the largest economic agreement between the two countries so far.
Elsewhere in his remarks, the oil minister said the deal will open a new era in further expansion of friendly bilateral relations.
Signing the deal is considered as one of the most important achievements of a three day Omani high ranking delegation visit to Iran that ended on Monday.
Iran and Oman have great potentials for boosting cooperation in oil industry including supplying gas to Oman’s LNG units which could be met mainly through sweet gas reserves of Kish gas field in the Persian Gulf.
Iran sits atop the second largest gas reserves in the world and short distance between the two countries through Persian Gulf waters turns Iran into one of the best options for meeting the neighboring country’s gas needs.
In 2007, Oman demanded to import two billion cubic feet of natural gas from Iran. At that time, National Iranian Gas Exports Company (NIGEC), now defunct, held fruitful talks with Oman.