Sunday 26 April 2009

Iran holds back on gas to UAE

Iran will not start delivering natural gas to the UAE until the price has been “corrected” in a contract with Crescent Petroleum, Oil Minister Gholamhossein Nozari said on Saturday.

The National Iranian Oil Company (NIOC) and UAE-based Crescent agreed on a deal in 2001 to deliver natural gas from Iran’s offshore Salman field to the UAE to meet the neighbouring Gulf country’s growing energy demand.

But the agreement was stalled over demands by Iran for a “fair” gas price.

Asked when the issue would be resolved, Mr Nozari told a news conference, reiterating Tehran’s official line: “Not until the price issue, as the focal point of the contract, is corrected will we begin to export any gas.”

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