A planned subsea natural gas pipeline between Iran and Oman is expected to have a higher estimated cost after the two countries had to change the project's route and design to avoid waters controlled by the UAE, an industry source said. "We expect slight upward budget adjustment because of this change," the industry source familiar with the matter said, adding the cost of the pipeline could be USD1-1.5bn after the change in the design. The pipeline will be shorter than originally planned but it will go deeper. The pipeline will have the capacity to carry 1bn cubic feet of gas per day (bcfd) but that might be raised to up to 2 bcfd because of high demand for gas in the region. (Reuters)