MENAFN) Oman has signed an agreement with the Islamic Republic of Iran under which the Arab Gulf state will import one billion cubic feet of liquefied natural gas (LNG) from Iran, which currently has the world’s second largest reserve of gas, The Peninsula reported.

LNG plants cool gas into liquid so it can be shipped beyond the range of pipelines but Iran’s efforts to build its own LNG facilities have faced delays, in part because US sanctions on Tehran deter investors and block access to some technology.

Analysts say Iran could use Oman as a transit route for its gas, which could be processed at Oman’s Qalhat LNG plant. The plant can make just under 10 million tons of LNG per year.

Iran has had long-running talks with India and Pakistan about an export pipeline without securing a deal and France’s Total has said spiraling costs and geopolitical concerns could delay its involvement in an Iranian LNG project, which has already been pushed back to 2011 from 2009.

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