Foreign Investors Bid For Iran LNG Project

The National Iranian Oil Company is to set up a LNG plant, composed of two parts running equally, in southwest coastlines of Iran in Pars Special Energy Economic Zone. Each part is expected to run with the annual production capacity of approximately 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.

Many foreign companies are ready to venture projects with Iran for LNG production, said Ali- Reza Kameli, the Managing Director of the National Iranian Gas Export Company (NIGEC).

Being three dimensional, the investor would finance the liquidation of natural gas, the contractor company will implement and build it and a third company will guarantee extraction of the LNG. Hence, powerful companies, among them are European and strong Asian companies, have announced their readiness for joint investment.

Kameli continued to say that the best bid offered by the companies will be taken into consideration. He also noted that Korea’s Kogas has signed a deal with NIGEC and is one of the companies which has run the bid to contribute to Iran LNG project. For now, the financing aspect and degree of necessary activities for implementation by the foreign bidding companies remain the major issues regarding the Iran LNG project. The technical assessment of the LNG project of Iran will be completed in the next three months, Kameli added, and the establishment of the factory for liquidation of natural gas is in progress in Tombak region 50km northwest of Assalouyeh and 15 km southeast of Kangan-Pars (Tombak).He pointed out that the difference over

He pointed out that the difference over price of gas between Europe and Asia has minimized, and thus referred to the export of LNG to Europe as a long-term goal.
He added that Iran can export LNG consignment to Europe via Suez Canal within 12 to 14 days, which is 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.”

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