The UK's Foster Wheeler, Oslo-based AkerKvaernerand Japan's Toyo Engineering Corporationhave been requested by MENG and Petropars to state their interest in carrying out the study, which will determine the facilities needed for the project as well as gas and transportation tariffs and costs.

The project envisages the installation of a pipeline running from Assaluyeh-Bandar Abbas as a branch of the proposed Iran-Pakistan onshore pipeline, including upstream processing facilities. The pipeline would run offshore to the UAE and from there to an onshore receiving terminal in Oman.

The project promoters say it is still at a very early stage of development and the relationship between MENG and Petropars is not yet established. They say the project will become clearer by mid-November.

Iran is negotiating several other gas export pipeline projects. A line already runs to Turkey, with whom Iran has a long-running dispute over the offtake price of gas. National Iranian Gas Export Company (NIGEC)in partnership with the UAE's Crescent Petroleumis planning to sell gas to Dubai. Other plans include pipelines to Armenia, India and Pakistan.