Oman plans to still go ahead with a giant $1.5 billion natural gas pipeline linking the sultanate with Iran despite the threat of US sanctions imposed on the Islamic republic, according to the Gulf Arab state’s oil minister.
Agreed in 2013, the subsea pipeline will deliver 1 Bcf/d of gas to Oman potentially for processing into LNG and also for domestic consumption.
“We are still going ahead,” said Mohammed al-Rumhy, speaking ahead of OPEC’s formal meetings on Friday. “Formally, we are still waiting for the detail of the sanctions. On paper we’re sending the tender documents to companies interested all over the world.”
US sanctions targeting Iran’s energy sector are due to come into force in November but are expected to focus on its oil industry. Oman’s ongoing commitment to its gas link with Iran is in contrast with other potential partners.