Iran has signed a deal to export gas to nearby Oman that could open new export routes well beyond the neighboring Arab state. Under the agreement signed early this week, the Iranian Oil Ministry website said Iran would export one billion cubic feet of gas to Oman, a small gas producer itself which already has an export terminal to make liquefied natural gas (LNG). LNG plants cool gas into liquid so it can be shipped beyond the range of pipelines but Iran's efforts to build its own LNG facilities have faced delays, in part because US sanctions on Tehran deter investors and block access to some technology. Iran, which sits on the world's second largest gas reserves, now exports only modest amounts of gas by pipeline. Omani Commerce and Industry Minister Makboul Bin Ali Bin Sultan, who signed the deal with Iranian Oil Minister Kazem Vaziri-Hamaneh, said the main aim was to meet Omani needs. “In future Oman needs a huge amount of gas, so we are negotiating with Iranian officials to buy gas from Iran. The joint cooperation project .... does not include just gas imports but also exploring, extraction and transfer by pipeline to Oman,” he said. Analysts say Iran could use Oman as a transit route for its gas, which could be processed at Oman's Qalhat LNG plant. The plant can make just under 10 million tons of LNG per year. “Potentially you could have Iranian gas actually being piped to Oman and then liquefied and sold on international markets,” he added.
