TEHRAN - Iran has started studies on building a pipeline intended for exporting natural gas to Oman, the Mehr News Agency reported on Wednesday quoting National Iranian Gas Company (NIGC) Managing Director Hamidreza Araqi as saying.

In March 2014, Iran and Oman signed a memorandum of understanding under which Iran will supply Oman with 10 billion cubic meters of natural gas per year in a 25-year deal valued at around $60 billion.    

A 260-km pipeline to transfer Iranian gas to Oman is expected to come on stream within three years.    

The proposed pipeline is projected to transfer natural gas from Iran’s South Pars gas field to Oman’s Sohar port.
 
In this regards, Iranian Offshore Engineering and Construction Company (IOEC) was selected to conduct onshore study of the project. 

The related deal was signed by National Iranian Gas Exports Company's Managing Director Alireza Kameli, IOEC’s Managing Director Gholamreza Manouchehri and Saif Bin Hamad Al Salmani, the director general of planning and projects evaluation in Oman’s Ministry of Oil and Gas. 

Also, Pars Consulting Engineering Company was selected to conduct onshore study of the project. The related deal was signed by the managing director of company and Kameli. 

Kameli said the onshore study and offshore study of the project are scheduled to be completed by six months and five months, respectively.

Iran, which sits on the world’s largest gas reserves, intends to enhance gas production by increasing foreign and domestic investment, especially in its South Pars gas field.   

South Pars gas field in the Persian Gulf is estimated to contain a significant amount of natural gas, accounting for about eight percent of the world’s reserves, and approximately 18 billion barrels of condensate.  

MA