Crescent Petroleum, a shareholder in Abu Dhabi-listed Dana Gas and Iran have resolved a pricing dispute over planned natural gas supplies to the UAE, Asharq al-Awsat newspaper reported, without citing anyone. The agreement will end a delay in supplies that should have started last year, the Saudi-owned newspaper said on Sunday.
Under an initial agreement, Iran would supply Sharjah, United Arab Emirates-based Crescent with 600 million cubic feet per day of gas. Dana Gas will process and distribute the fuel in the UAE.
Iran's oil minister, Gholamhossein Nozari, told reporters last week on the sidelines of an OPEC meeting that the pricing dispute had not been resolved, though facilities to produce the gas were almost complete.
On Wednesday, Iran's state-owned IRNA news agency quoted Mahmoud Zirakchianzadeh, managing director of the Iranian Offshore Oil Co, saying that the company expects to start supplying gas to Crescent by September.
The UAE needs gas from the $1 billion project to meet rising domestic demand from industry and power plants.
Iran, which has the world's second-largest gas reserves after Russia, has said it has considered using the gas for domestic purposes.