In the current economic climate, and with Oman now getting almost 6 million m3/d from Qatar and lots of talk on Oman pressing on with the coal-fired options, it - surprisingly - seems more and more the pressure to do a deal rests with the Iranians. The Iranians also keep stressing the LNG angle too, and the article goes on with some boilerplate propaganda about how Iran is successfully doing deals despite the economic sanctions from the USA.
Hard for me to believe a development of that size could be completed by 2012.
Iran, Oman Plan LNG Cooperation
TEHRAN (FNA)- Iran and Oman said they intend to seal a major gas deal by the year end that would allow export of more than 1 billion cubic feet of gas per day via pipeline. This would not only supply Oman's needs, but also provide supply for liquefied natural gas that would belong to Iran.
A deal to develop the Kish field which may hold as much as 45 trillion cubic feet of recoverable gas was signed in April, but the final agreement had been delayed due to price wrangling. [UD: my emphasis] Yet, negotiations picked up after a recent visit to the Persian Gulf country by Iran's Oil Minister Gholam Hossein Nozari.
Nozari struck the deal with Oman during his recent visit. Both countries are eager to finalize the agreement so production can begin by the targeted launch date in 2012. Oman would get the gas it badly needs to meet its export commitments and its soaring local demand. Iran would not only open new export routes to gas hungry Arab Persian Gulf countries, but also market a portion of its exports as LNG, which is more profitable and can be sold on the global market.
Oman has just 24 Tcf of gas reserves, compared to Iran's 982 Tcf. It produces 2.3 bcf/d and demand is expected to increase by more than 25 percent by 2012.