Iran says seals gas export deal with Oman | Reuters

Iran says seals gas export deal with Oman | Reuters:



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Oman's Sultan Qaboos bin Said (R) walks with Iran's President Hassan Rouhani upon Rouhani's arrival 

in Muscat March 12, 2014.

CREDIT: REUTERS/SULTAN AL HASANI

(Reuters) - Iran has sealed an agreement to export 10 billion cubic meters of gas per year to Oman, Iran's state news agency IRNA said on Wednesday, in a deal that also involves building a pipeline across the Gulf at a cost of about $1 billion.



The accord, signed during Iranian President Hassan Rouhani's first visit to Muscat since his election last year, came out of a memorandum of understanding between the countries in August for the sale of Iranian gas to Oman from 2015, in a 25-year deal valued at around $60 billion.



Energy-hungry Oman agreed to buy gas from Iran as far back as 2005 and a later draft deal in 2007 included plans for Oman to process Iranian gas for export as liquefied natural gas (LNG).



But the two sides had never finalized terms and Oman had been pressured by the United States to source fuel from alternative suppliers such as Qatar, according to U.S. embassy cables released by Wikileaks."



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