Iran has started engineering studies for the proposed gas pipeline linking to Oman.

National Iranian Gas Export Company (NIGEC) has signed contracts with Iranian Offshore Engineering & Construction Company (IOEC) for the offshore section of the pipeline, and the local Pars Consulting Engineers Company for the onshore section, reports Tehran-based Tasnim News Agency.

Iran plans to export 28 million cubic metres a day of gas to Oman for 15 years.

Oman exports gas in the form of liquefied natural gas (LNG), but volumes have fallen in recent years. The sultanate also imports gas from Qatar to meet demand.

Imports of gas from Iran would help Muscat meet demand from the power sector, but could also boost LNG exports and provide feedstock and energy to develop new industrial projects.

Oman has been the GCC state most enthusiastic about commercial links with Iran. In September 2013, Oman’s Sultan Qaboos bin Said al-Said visited Tehran and agreed the Iranian gas deal. Progress on the project has been slow, but observers say the possible lifting of international sanctions on Iran is likely to increase the pace of its execution.