UAE-Iran gas deal stalls

TEHRAN, Sept. 11 (UPI) -- Iran and the United Arab Emirates postponed negotiations on a deal to export natural gas from the Iranian Salman field, citing pricing concerns.

Seifollah Jashnsaz, managing director of the National Iranian Oil Co., said both sides had failed to reach an agreement on the contract with Crescent National Gas Corp., citing disputes of transfer fees, Iran's Mehr News Agency reported Thursday.


"Negotiations will continue in the near future," Jashnsaz said.

Crescent and the National Iranian Oil Co. signed a deal in 2001 to transport natural gas through a 90-mile pipeline from the Salman field to Lavan Island in the Persian Gulf.

Iran was expected to begin exporting around 600 million cubic feet of natural gas per day to the UAE starting in 2005, but state auditors said Iran could lose as much as $21 billion over the 25-year agreement if gas prices do not meet market conditions.

Latest Headlines