Oman and Iran change route on subsea gas pipeline

08 February 2017

New route avoids UAE territorial waters

Iran and Oman have agreed to alter the route of a planned subsea gas pipeline, bypassing territorial waters of the UAE, according to the Iranian oil minister.

“The two countries agreed that the gas exports pipeline avoids waters controlled by the UAE and passes through deep waters,” Bijan Zanganeh was quoted as saying by Mehr News Agency.

An agreement to supply gas to Oman over 25 years through a $60bn undersea pipeline was signed by both countries in 2013.

However, no further action was taken despite the lift of sanctions as the UAE was opposed to constructing the pipeline in its waters.

The project was also projected to be more expensive than previously estimated.

Oman’s oil minister Mohammed bin Hamad al-Rumhy said the altered route will not add to costs.

“The change of the pipeline route through deep waters has no economic impact on the gas exports project,” he said.

Representatives from Anglo Dutch-firm Shell, France’s Total and Korea Gas Corporation attended the meeting with proposals for the pipeline, according to Zanganeh.

The project would allow for 10 billion cubic metres of Iranian liquefied natural gas to be supplied to Oman annually. The gas will reportedly be received at Oman’s Qalhat LNG terminal.

Investment of around $1.2bn would be required for the project, added Zanganeh. He did not offer a timeline for the completion of project.

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