SHARJAH, United Arab Emirates, (UPI) -- Emirati energy company Crescent Petroleum said it would hold talks with Iran in June to build a natural gas pipeline between the two countries.
Hamad Jafar, the chairman of Crescent Petroleum, told the Emirates Business news agency some developments on the stalled pipeline were expected by June.
"We'll have some news next month," he said. "We are hopeful the pipeline will start this year, the technical delays are on the Iranian side." He declined to elaborate.
In 2001, Crescent and National Iranian Oil Co. signed a deal to transport natural gas from the Salman field to Lavan Island in the Persian Gulf along a 90-mile pipeline.
Iran at the time had called for an increased price as global energy prices soared in the prelude to the global recession.
Under the terms of the agreement, Iran was set for initial exports of 195 million cubic feet to the United Arab Emirates, with provisions to raise that level to 350 million cubic feet under a 25-year contract.