Infrastructure

Oman-Iran gas pipeline cost ‘set to rise’

New route could see bigger budget for the planned 400km gas pipeline project – report

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The cost of a planned 400km gas pipeline between Iran and Oman is set rise because of a change in the subsea route, according to a Reuters report.

The subsea section of the pipeline could be rerouted and the design changed, the news agency said citing an unnamed source.

While the new proposed route will be shorter it could go deeper – up to 1000 metres, double depth of the earlier plan. Capacity may also be raised.

“We expect slight upward budget adjustment because of this change,” the source told Reuters. “But we have not finished the deep route survey yet.”

Despite the potential change, the project is not being shelved, the source added.

Iran and Oman in 2013 signed a gas-supply deal valued at $60 billion over 25 years. It would allow Oman to use Iranian gas for domestic needs as well as to export it to global markets as LNG.

Initial plans for the pipeline suggested it would cost between $1 billion to $1.5 billion to build, and include a 200km stretch under the Arabian Gulf, and another 200km onshore in Iran.

In June, it was reported that the Dutch offshore engineering firm Intecsea had submitted a proposal to participate in the construction of the proposed pipeline.

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