Iran moves to export LNG

With no export facilities of its own, sanctions-free nation plans to piggyback on neighbour.

Iran said it will soon begin talks with the neighbouring Gulf state of Oman in order to use the sultanate’s LNG terminal to export Iranian gas, according to a government news release.

Citing a recent visit to his counterpart in Oman, Iran’s Petroleum Minister Bijan Zangeneh said: “Gas export, using vacant LNG capacity, and oil market were the main issues discussed during the meeting.”

The scheme involves building a pipeline from Iran to ship natural gas to Oman LNG for liquefaction and export.

Due to growing domestic use and dwindling supply, Oman LNG has spare liquefaction capacity. According to its last annual report, Oman produced 8 million tonnes of LNG in 2014, but has capacity for over 10 million tonnes.

Iran had floated the idea in 2014, but the sanctions imposed by the US and European Union kept the pipeline from being developed.

But Zanganeh said Iran’s national gas company will begin technical and financial talks on the project with Oman LNG, which is a joint venture with Oman, Royal Dutch Shell, Total, Korea LNG and other Asian firms.