Iran’s Oil Minister Bijan Zangeneh, discussed expansion of energy cooperation between Tehran and Muscat with the visiting Omani Minister of Oil and Gas Mohammed Hamad al-Rumhi, reported Press TV.
Alireza Kameli, managing director of the National Iranian Gas Export Company, revealed “negotiations about Iran taking advantage of Oman’s LNG installation” were the most important topic of discussions between Zangeneh and al-Rumhi.
Iran will pay a brokerage fee to Oman in return for the conversion of natural gas to LNG, he said, adding that “At present, studies on the offshore part of the project for the construction of a gas pipeline between the two countries are underway by the Iranian Offshore Engineering and Construction Company (IOEC).”
Iran’s SHANA news agency added that about 23% of the capacity of Oman’s LNG installations is now vacant and the two sides discussed the possibility of Iran taking advantage of those installations to exports its LNG to global markets.
The meeting took place ahead of the third summit of the member states of the Gas Exporting Countries Forum (GECF), held in the Iranian capital on Monday.
In related news Trade Arabia announced that Oman’s National Gas has signed a $2.1m joint venture agreement with Qatar-based Petroserv Limited.
The contract is for the design and supply a synthetic natural gas (SNG) system and allied equipment for the Lusail City gas farm project in Doha.
The project is expected to be commissioned by December 2016 after the contract is finalized by Lusail.
Oman is an observer member of the gas forum which is made up of 17 members with its permanent secretariat positioned in Doha, Qatar.
Russia, Iran, Qatar, Algeria, Bolivia, Egypt, Equatorial Guinea, Libya, Nigeria, Trinidad and Tobago, Venezuela, and the United Arab Emirates, are the main members of the gas exporting body. Observer countries are the Netherlands, Iraq, Oman, Peru and Norway.
GECF members account for 42% percent of global gas output, 70% of global gas reserves, 40% of pipe gas transmissions, and 65% of global trade of the liquefied natural gas (LNG).