Oman says an ambitious project to import natural gas from Iran through sea has hit a snag due to a disagreement over the route of the pipeline. 

Oman’s Minister of Oil and Gas Mohammed Al Rumhy has been quoted by the Gulf Times as saying that Iran and Oman are yet to agree on the route of a 260km underwater pipeline for the project.

“The first part is to agree on the route. Once we agree on the route we will move onto the second phase, which is the design of the pipeline itself,” said Al Rumhy.

Iran’s media on Saturday quoted officials as saying that the project to export gas to Oman was not progressing.

Hamid-Reza Araqi, the managing director of the National Iranian Gas Company (NIGC), was quoted as saying that negotiations over the project have been halted at the Ministry of Petroleum.

“A perceived obstacle to the pipeline is the price that Iran will sell its gas to Oman for,” wrote the Gulf New. However, Al Rumhy said the two countries are yet to discuss prices with an agreement in place to discuss it “towards the end of the project, it added.

“The ultimate goal from this side of the water is to build this as an infrastructure project. I think it’s good for our energy security,” Al Rumhy said.

“We’ll deal with the price when we get that part over,” he added.

Al Rumhy also said that Oman has not started marketing Iran gas. He said he believes the project “will see daylight.”

Based on a preliminary deal signed between Iran and Oman in 2013, the two sides agreed to start necessary operations to start the exports as soon as possible.

The volume of exports which will be provided from Iran’s Kish gas field is 20 million cubic meters per day or 10 billion cubic meters per year.

Oman had earlier announced that it wants Iran’s gas to satisfy the needs of its domestic industries. It also said a part of the Iranian gas will turned into liquefied natural gas (LNG) for exports to other markets including Japan, South Korea and India.

By Press TV