Foreign Investors Bid for Iran LNG Project

The Managing Director of the National Iranian Gas Export Company (NIGEC) has said that foreign companies are ready to enter venture projects with Iran for LNG production.

Ali-Reza Kameli said technical assessment of the LNG project of Iran will be completed in about three months.

He said under the project the factory for liquidification of natural gas will be financed by the investor, while the contractor company will implement and build it and a third company will guarantee extract of the LNG.

He noted that a number of powerful foreign companies have hence announced readiness for joint investment covering the three dimensions.

The NIGEC top official said European companies and strong Asian companies call for implementation of the Iran LNG project, adding that the best bid offered by the companies will be taken into consideration.

He said South Korea’s Kogas, which signed a deal with the NIGEC, is one of the companies which has run the bid to contribute to the Iran LNG project.

Kameli said for the time being, Iran LNG project, the financing aspect and degree of necessary activities for implementation by the foreign bidding companies are among top issues worth regarding in this domain.

Managing Director of the NIGEC predicted that by the next three months, Iran LNG Due Diligence technical assessment will be over.

National Iranian Oil Company is to set up a LNG plant, consisting two parts running in par, in southwest coastlines of Iran in Pars Special Energy Economic  Zone. Each part is expected to run with the annual production capacity of about  5.4 million tons of LNG, 0.263 million tons of propane, 0.194 million tons of bhutan, 0.213 million tons of gas condensates, and 0.133 million tons of sulfur .

The factory for liquidification of natural gas is getting established in Tombak region 50 kms northwest of Assalouyeh and 15 kms southeast of Kangan-Pars 2 (Tombak).

He referred to export of LNG to Europe as a long-term goal and said these days Europe-Asia difference over price of gas has been minimized.

“On the one hand, Iran can export LNG consignment to Europe via Suez Canal within 12 to 14 days – something similar to exports to China and markets even farther like Korea, Singapore and Japan. Supposing the prices go down further or even getting equal, there will be more motivation for export of LNG to Europe.”

(Source: Shana)

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