DUBAI Feb 7 Oman and Iran have agreed to change
the route of a planned undersea gas export pipeline, to avoid
waters controlled by the United Arab Emirates, Iran's oil
minister said on Tuesday after meeting his Omani counterpart in
The planned pipeline would connect Iran's vast gas reserves
with Omani consumers as well as with liquefied natural gas (LNG)
plants in Oman that could re-export the gas.
In 2013 the two countries signed an agreement to supply gas
to Oman through the new pipeline in a deal valued at $60 billion
over 25 years.
After international sanctions on Tehran were lifted in
January 2016 the two countries renewed efforts to implement the
project but it has also been delayed by disagreements over price
and U.S. pressure on Muscat to find other suppliers.
"The two countries agreed that the gas exports pipeline
avoids waters controlled by the United Arab Emirates and passes
through deep waters," Bijan Namdar Zanganeh was quoted as saying
on Tuesday by Mehr news agency.
Zanganeh said during his meeting with Oman's Minister of Oil
and Gas Mohammed bin Hamad al-Rumhy in Tehran that a new
agreement was signed that extends the previous deal.
"The change of the pipeline route through deep waters has no
economic impact on the gas exports project," he added.
The representatives from Shell, Total and
Korea Gas Corp (KOGAS) also attended the meeting in
Tehran, Zanganeh said, and offered their proposals.
Iran's oil minister said the whole project would need $1.2
billion of investment.
(Reporting by Bozorgmehr Sharafedin; Editing by Greg Mahlich)