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Ali Akbar Sibeveih, the Iranian Ambassador to the Sultanate of Oman, recently told the Times of Oman that a new pipeline, intended to transport natural gas from Iran to Oman as part of a $60 billion deal to increase cooperation and trade between the two countries, should be ready to begin operation within 18 months.
Iran and Oman last month signed a memorandum of understanding (MoU) stating that over the next 25 years Oman would buy nearly half of its total natural gas imports from Iran, via the pipeline.
Sibeveih explained that the idea of the pipeline was first discussed during negotiations over a decade ago, but that no agreement was ever stuck between the two sides. “The main reason was a lack of agreement on the price of the gas that was supposed to be exported.”
Sibeveih explained that Iran already had export deals with countries such as Iraq, Pakistan, Turkey, Kuwait, and the UAE, so Oman was the next logical step.
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“The two countries made intensive efforts over the past 10 months in this regard.
The export of gas to Oman will mark a significant economic development in the relations between the two countries.”
Iran and Oman are also working to create a North-South corridor project that will form a strategic transit route to provide an easy method for the transport of goods from Central Asia to the Gulf.
Two-way trade between Iran and Oman is currently at worth about $200 million a year, but it is hoped that it could reach $1 billion in the coming years, mainly through increases in the petrochemical, technology, and oil refinery sectors.
By. Joao Peixe of Oilprice.com
Joao is a writer for Oilprice.com