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Iran-Oman pipeline rerouted

Published by , Assistant Editor
World Pipelines,

According to the Iranian oil minister, Bijan Namdar Zanganeh, officials from Oman and Iran signed an agreement on 7 February in a meeting that was also attended by representatives from Shell, Total and Korea Gas Corp. (KOGAS). The parties agreed to alter the route of their proposed underwater natural gas pipeline, which is set to transport Iranian gas to Oman.

Reuters reported that Mehr news agency quoted Bijan Namdar Zanganeh as stating: “The two countries agreed that the gas exports pipeline avoids waters controlled by the United Arab Emirates and passes through deepwaters.”

While reports have previously suggested that the route change would make the pipeline more expensive, the changes have been said to have no economic impact on the project.

As reported by the Tehran Times, the two countries signed an agreement to supply Iranian gas to Oman through the new pipeline in 2013. The deal is valued at approximately US$60 billion over 25 years.

Zanganeh also noted that the project would require US$1.2 billion in investment.

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