Iran is reportedly looking into a plan to pipe its natural gas to Oman and have it liquefied there for exports to international markets.
To the same effect, energy authorities from Iran and Oman have agreed to undertake a joint technical feasibility study on the construction of a 200-kilometer subsea pipeline across the Persian Gulf.
The two countries reportedly plan to take Iran's gas to the liquefaction facilities of Oman’s Qalhat LNG plant.
Some of supplies in the pipeline would also be used to meet Oman’s expanding gas demand, LNG World Shipping news website reported.
The Qalhat plant has the capacity to liquefy 10.4 million tons per annum (mta) of LNG. Yet, only 7.9 million tons were exported in 2014 from it to international markets, as the priority was given to meeting domestic gas requirements.
In a memorandum of understanding (MOU) signed in 2012, Iran and Oman agreed in principle to construct this subsea pipeline.
The first phase of the proposed project called for the transfer of 1 billion cubic feet of gas per day (equivalent to 7.3 mta of LNG) through the link, building up to 3 billion cubic feet/day in further phases.
Iran’s huge reserves of natural gas represent around 18 percent of the global total.
Although Iran is itself considering construction of its own liquefaction plants, making use of the Qalhat facility offers the fastest route to materialize Tehran’s LNG export ambitions, LNG World Shipping reported.