A planned sub-sea natural gas pipeline to link Iran and Oman is expected to reach a higher estimated cost of $1-1.5b after the two countries had to change the project’s route and design to avoid waters controlled by the United Arabs Emirates, reported Reuters.
The planned pipeline would allow Oman to use Iranian gas for domestic needs as well as to export it to global markets as liquefied natural gas (LNG).
It will have the capacity to carry 1bcf/d of gas, with the chance to raise it up to 2bcf/d due to high demand in the region. Its shallow route has a maximum depth of 500m, have the option to go deeper up to 1000m, according to Al-Arabiya.
The two countries signed an agreement in 2013, where Iran would supply gas to Oman through the pipeline. The deal was valued at $60b and would extend for 25 years. Yet, the project was stalled as price disagreements and western sanctions pressured Oman to find other suppliers for its gas needs.