September 08, 2008

Iran Crescent gas project to be operational by mid 2008

ISNA quoted Mr Hamid Zaheri MD of Crescent Petroleum Iran as saying that operations for the export of Iran’s gas to the UAE based on Iran Crescent deal will be kicked off in next 3 to 4 months.

Mr Zaheri said that presently talks are underway between Iran and the UAE regarding the price and the volume of export gas. He added that the price of exporting gas to the UAE based on the new price formulation is at least twice as the price of gas which is exported from Qatar to the UAE, but the Iran Crescent deal is based on the price of crude oil so the price of export gas will inevitably increase.

He said that since the time of signing the initial MoU, the price of gas has been 5 fold due to the global rise of crude oil. UAE has voiced interest for receiving more gas from Iran, but Iran has stipulated that for the time being it is not able to raise the volume of export gas to the UAE.

Recently, Mr Hamid Jafar MD of Dana Gas Company of the UAE has announced that it will receive Iran gas as of mid 2008. He remarked that the comments of Dana Gas managers can pave the way for the export of Iran gas.