Sanctions relief will speed up Iran-Oman pipeline project

25 January 2016

Oman oil minister targeting early 2016 for start of execution phase

Oman expects the removal of sanctions against Iran to speed up its plans to build a pipeline to import gas from the Islamic republic.

The Omani energy minister Mohammed al-Rumhi said in an interview with Reuters that the front-end engineering and design (feed) study is expected to be completed in the next five months.

In 2013 the two countries signed an agreement for the cross-border undersea pipeline to increase gas supply to Oman but the project has missed its initial targets.

Oman exports gas in the form of liquefied natural gas (LNG) volumes have fallen in recent years, while the sultanate also imports gas from Qatar to meet demand. Imports of gas from Iran would help it to meet demand from the power sector, but could also boost LNG exports and provide feedstock and energy to develop new industrial projects.

“I am very optimistic that now the sanctions have been lifted, the gas pipeline project will move in a faster track than before,” Al-Rumhy said in the interview.

“We were facing lots of difficulties. Now we can order compressors, we can order pipes, seek consultancy help, we can talk to banks about financing. Things have changed,” he added.

Al-Rumhy said the engineering, procurement and construction (EPC) work could be started in the first quarter of 2016 and the first gas could be imported in 2019.

A MEED Subscription...

Subscribe or upgrade your current MEED.com package to support your strategic planning with the MENA region’s best source of business information. Proceed to our online shop below to find out more about the features in each package.