Iran eyes natural gas exports to Oman with international oil companies

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Senior officials from state-owned National Iranian Gas Exports Co have met with Oman’s oil ministry and three international oil companies — Shell, Total and Korea Gas Corp — to look at the potential to pipe gas from Iran to Oman, the students ISNA news agency reported.

The officials held a two-day meeting in Tehran examining cooperation in the project, the reports said without giving further details.

In 2013, Tehran and Muscat agreed on a 15-year gas exports plan via a seabed pipeline. The pipeline, estimated to cost around $1.5 billion, will have the capacity to transport 1 Bcf/d of Iranian natural gas to Oman.

“We can confirm that Shell is a member in the Advisory Task Force of the Iran/Oman gas pipeline Project. The scope of the work of the project is subject to confidentiality”, a spokesman for Shell said Monday.

Total did not respond to a request for a comment, while Kogas could not be reached for comment.

The details of the project are yet to be finalized. Iran plans to build a 200 km onshore pipeline from Rudan to Kooh Mobarak in the southern Hormozgan province on the Persian Gulf. An offshore pipeline of roughly the same length would extend from Kooh Mobarak to Oman’s Sohar port. The construction of the pipeline is expected to take two years.

Iran is considering two shallow and deep sea routes, including one which would circumvent any maritime borders and therefore would not require permission from its neighbors.

National Iranian Oil Co. signed a $4.8 billion Heads of Agreement last week with a consortium led by Total to develop Phase-11 of the huge South Pars gas reservoir, signaling Iran’s commitment to opening up its energy sector to international oil companies following the lifting of sanctions in January.

The development will have a production capacity of 1.8 Bcf/d, or 370,000 b/d of oil equivalent. The gas will be fed into Iran’s gas network. Iran hopes the agreement will break the ice for other oil companies to invest in the country.
Source: Platts