Tuesday, August 02, 2016 plans and projects



Iran-Oman Natural Gas Pipeline Project

 

Considering the strategy of Islamic Republic of Iran as to strengthening its relations with its neighbors and the emphasis of Their Excellencies, the President of the Islamic Republic of Iran and the King of Sultanate of Oman, a Memorandum of Understanding (MoU) for the export of natural gas from Iran to Oman was signed by the petroleum ministers of the two countries on 26th August 2013. Subsequently, a Framework Agreement (FA) for the cooperation of the parties was also signed in Muscat by the National Iranian Gas Export Company (NIGEC) and the Ministry of Oil and Gas (MOG) of Oman in February 2014, during the visit of the Islamic Republic of Iran’s president to Oman.

To export the gas, a pipeline was planned to be constructed in two parts of onshore and offshore. After carrying out the legal processes, the Iranian Offshore Engineering and Construction Company (IOEC) and the Pars Consultant Engineering Company were selected, respectively, for the offshore and onshore sections as the consultants of the project to perform the marine survey and basic engineering studies of the two parts.

The contract of the offshore section includes marine survey, basic engineering studies for a subsea pipeline (about 180 Km in length and 36 inches in diameter) from the shore of Kuhe Mubarak in Iran to the shore of Sohar Port in Oman, basic engineering studies for compressor and metering stations in Kuhe Mubarak. As of July 2016, the task of preparing the tender documents for the execution phase of this section between the IOEC as consultant and NIGEC and MOG of Oman as the project employers is in progress.

The contract for the onshore section includes the basic engineering studies for a pipeline about 200 Km in length and 56 inches in diameter, from the Iranian Gas Trunkline 7 (IGAT7) to Kuhe Mubarak, and the task of preparing the tender documents for the execution phase of this part is signed between the Pars Consultant Engineering Company as the consultant and NIGEC as the employer is in progress.

It is forecasted that a daily amount of 28 to 42 million cubic meters of gas will be exported to Oman, at least for 15 years. 

 

Gas/Electricity Barter with Armenia: 

Iranian gas for Armenian electricity barter deal was signed in 2004 in the form of two contracts, one for gas delivery to Armenia and one for receiving electricity from Armenia, between the National Iranian Gas Export Company (NIGEC) on behalf of National Iranian Oil Company (NIOC) and Yerevan Thermal Power Plant (YTPP) on behalf of Ministry of Energy and Natural Resources of Armenia, for a period of 20 years.

According to the signed bilateral agreements, the gas export was set to be started in 2007, but the contract was postponed and became officially operational in 13th May 2009.To transport the Iranian gas to Armenia, a pipeline 113 Km in length and 30 inches in diameter was constructed between Tabriz and Armenian border.

 

Gas Swap with Azerbaijan:

Nakhchivan is a landlocked exclave of Republic of Azerbaijan, meaning that it has no geographical and land continuity with the mainland of Azerbaijan. However, the exclave borders with Iran in the South. In order for Azerbaijan to supply gas to Nakhchivan, Iran (represented by NIGEC) and Azerbaijan signed a gas swap deal on 5th Aug 2004 which became operational from 2005. Based on this contract, Iran receives gas from Azerbaijan through the Astara border and will swap it to Nakhchivan via Jolfa.

In 2013 and 2014, about 400 million cubic meters of natural gas of Azerbaijan was transported to Iran to be supplied to Nakhchivan according to contractual arrangements.

 

Gas Exports to Iraq: 

Considering the gas requirements of Iraq for consumption in its power plants, the plan and discussions regarding the export of Iranian gas to Iraq started from the second half of 2010 and accordingly, contracts to deliver Iran’s natural gas to Baghdad and Basra were signed in Tehran by the attendance of Iran Petroleum Minister and Iraq Deputy Minister of Electricity in 21st July 2013 and 11th November 2015, respectively.

 The contract regarding gas export to Baghdad is for a period of 6 years with the maximum export capacity of 35 million cubic meters per day. The period for the gas export to Basra is also 6 years with the maximum export capacity of 25 million cubic meters per day.

Based on the agreements, the gas for Diyala and Baghdad provinces of Iraq will be supplied from the Iranian Gas Trunkline 6 (IGAT6) through a pipeline about 228 Km in length and 48 inches in diameter, extending from Kuhdasht to Naftshahr. The feed gas for the Mansouriyah, Alghods and Alsadr power plants will be supplied through this route.

Gas export to Baghdad was initially planned to start in the first half of 2016; however, due to some safety issues in Iraq, the commissioning of the project has been postponed.

 

 Gas Export to Pakistan:

The project to export gas to Pakistan and subsequently to India, called the Peace Pipeline, was proposed in 1990 and the construction of Iran-Pakistan part (IP Pipeline) was agreed bilaterally in 2007. Following the negotiations, the Gas Sales and Purchase Agreement (GSPA) between National Iranian Gas Export Company (NIGEC) and ISGS of Pakistan was signed on 5th June 2009 for a period of 25 years and the start of gas delivery to Pakistan was set to be on 31st December 2014 with the natural gas export of 21.5 million cubic meters on a daily basis.

The gas will be transferred through the Iranian Gas Trunkline 7 (IGAT 7) from South Pars gas field in Asalouyeh to Iranshahr (907 Km; 56 inches) and from there to Iran-Pakistan border (207 Km). The import pipeline in the land of Pakistan has a diameter of 42 inches and extends from the Iran-Pakistan border to Nawabshah and it is 781 Km long.

 

Gas Export to India:

National Iranian Oil Company (NIOC) has considered and studied three potential ways to transport natural gas from Iran to India via pipeline, including through deep waters, shallow coastal waters and also through a land-based pipeline.

Subsequently, a Memorandum of Understanding (MoU) for export of Iranian natural gas to India was signed on 29th September 2009 between the National Iranian Gas Export Company (NIGEC) on behalf of National Iranian Oil Company (NIOC) and SAGE Co. of India, to export Iranian natural gas via deep waters to India. In this regard, a framework for the joint cooperation between NIGEC as the seller, SAGE as the transporter and also Indian buyer companies is under negotiation and consideration. Once a final agreement is reached, Iranian gas will be exported to India through a subsea pipeline 1400 Km in length which would be the deepest and the longest subsea pipeline in the world for the transport of the natural gas.

Gas Export to Turkey:
The plan to export Iranian natural gas to Turkey was realized by conclusion of a contract for a period of 25 years for a maximum amount of 10 BCM/Year with the possibility to increase the export volume to 13BCM/Y. The contract was signed between National Iranian Gas Company (NIGC) and BOTAS Co. of Turkey in August, 1996 and the exports began in December 10, 2001.
The feed gas needed for this contract is supplied by the Iran’s southern gas resources and through the Iranian Gas Trunklines (IGATs) I, II and III, the 48-inches gas pipeline of Qazvin-Tabriz and the 40-inches pipeline of Tabriz-Bazargan (total length is 2000 Km). The natural gas is transported to the metering station in Bazargan and after qualitative and quantitative measurements, it is delivered to a 48-inches pipeline in Turkey.
 
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