Name of client  : Ministry of Oil & Gas
Revised Budget  : $1 billion
Facility Type  : Gas
Sector  : Pipeline
Status  : Feed
Location : Sohar
Feed : IOEC, Pars Consulting Engineers Group

Background

Iran and Oman plan for 400-kilometre pipeline, stretching from Mubarak Mountain to Sohar Port. The pipeline will transfer Iran’s natural gas from Hormozgan province in Iran to Port of Sohar in Oman.

The pipeline will have the capacity to carry 1 billion cubic feet of gas per day (bcfd) but that might be raised to 1.5-2 bcfd because of high demand in the region. The plan is to use Iranian gas for domestic needs in Oman as well as exporting it to global markets.

Project status

March 2016: Works on the Feed studies are ongoing. It is hopped that the studies complete by June 2016. The award of the main contract is scheduled for Q1-2017.

Project scope

The scope of work includes the construction of:

• 260 km sub-sea pipeline

• 140 km onshore pipeline

Project finance

Oman’s Ministry of Oil & Gas is the client.

Oman will pay for the entire cost of the pipeline and related infrastructure, estimated at around $1 billion. Muscat will be compensated for its investment through revenues generated from the sale of the gas.

Project schedule

Feasibility Study   Q3-2013
Feed ITB   Q4-2015
Feed    Q3-2016
EPC ITB    Q3-2016
Engineering & Procurement  Q1-2017
Completion   Q4-2018