Oman has offered to export natural gas to neighboring United Arab Emirates (UAE), Omani Oil Minister Mohammad bin Hamad al-Rohmi said in an interview published on Sunday, April 15.
“In principle, we are ready to sign a heads of agreement. Now we are awaiting a response from the UAE government," Romhi told the weekly Middle East Economic Digest, adding that negotiations over the proposed sale were "quite advanced". He stressed that any deal would be on a short-term basis for "smallish" volumes.
Oman, which last year launched exports of liquefied natural gas to Asia, signed a memorandum of understanding with the UAE's Offsets Group in June 1999 to import Qatari gas via the Emirates under a multi-billion-dollar project known as Dolphin.
"Exporting gas (to the UAE) will make sense as it will create a network, which will allow gas to come in and out. I have always said there is nothing wrong with either importing or exporting gas," said Romhi.
Exports to the Emirates would be supplied from an extension to a pipeline which is currently under construction, he said.
Oman, a small non-OPEC oil producer, has put its proven gas reserves at around 660 million cubic meters (22 trillion cubic feet), with potential reserves more than double that figure. —(AFP)
© Agence France Presse 2001
© 2001 Mena Report (www.menareport.com)