Iran hopes to resolve soon a gas price dispute with the UAE private energy company Crescent Petroleum, an Iranian oil official said.
The UAE needs the gas to meet rapidly rising domestic demand from industry and power plants. The deal became controversial in Iran last year after some politicians said the country would not benefit from the exports because gas prices had risen sharply since the initial contract was signed. Iran later said it would not export to the UAE until it secured a higher price.
'We hope all outstanding commercial matters on this contract will be resolved in the very near future to the mutual benefit of both sides,' Gholamhossein Nozari, managing director of the National Iranian Oil Company said in a statement reported by Wam.
Construction of Iran's side of the project was in its final stages, Nozari said. He was speaking after meeting the deputy ruler of the UAE emirate of Sharjah, where the Iranian gas will be imported.
Industry sources said in March that Iran would likely complete its side of the facilities in May, and had struggled with technical problems and a shortage of labour.
Labour shortages have dogged new energy projects worldwide, contributing to rising costs and startup delays.
Crescent Petroleum holds the gas supply contract with Iran and had expected first deliveries of gas in mid-2006. The initial agreement was for the supply of 600 million cubic feet per day. The pipeline and gas processing plants in UAE waters have long been complete.
Crescent's affiliate Dana Gas will process and transport the gas to utilities and industrial users in the UAE.
The UAE needs the gas to meet rapidly rising domestic demand from industry and power plants. The deal became controversial in Iran last year after some politicians said the country would not benefit from the exports because gas prices had risen sharply since the initial contract was signed. Iran later said it would not export to the UAE until it secured a higher price.
'We hope all outstanding commercial matters on this contract will be resolved in the very near future to the mutual benefit of both sides,' Gholamhossein Nozari, managing director of the National Iranian Oil Company said in a statement reported by Wam.
Construction of Iran's side of the project was in its final stages, Nozari said. He was speaking after meeting the deputy ruler of the UAE emirate of Sharjah, where the Iranian gas will be imported.Industry sources said in March that Iran would likely complete its side of the facilities in May, and had struggled with technical problems and a shortage of labour.
Labour shortages have dogged new energy projects worldwide, contributing to rising costs and startup delays.
Crescent Petroleum holds the gas supply contract with Iran and had expected first deliveries of gas in mid-2006. The initial agreement was for the supply of 600 million cubic feet per day. The pipeline and gas processing plants in UAE waters have long been complete.
Crescent's affiliate Dana Gas will process and transport the gas to utilities and industrial users in the UAE.
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