Iran presses on with LNG plans
Intriguing news has emerged from Iran this week, where state-owned Press TV reports that foreign companies could invest US$800 million-US$1 billion in floating LNG (FLNG) to tap offshore gas reserves in Middle East Gulf waters.
Other reports suggest that orders for conventional LNG carriers are imminent. State-owned tanker owner NITC has held talks this year with shipyards in South Korea and China about orders for an unspecified number of LNGCs. Sanctions previously prompted Iran to consider building LNG carriers at home.
Press TV quotes National Iranian Oil Co (NIOC) head of investment Ali Kardor saying that studies are underway to convert 200 million ftᶟ of natural gas a day into LNG. Mr Kardor said he could not name the foreign partners as giving details “might burn the offer because these projects have opponents outside Iran”.
Recent reports have linked companies in France, the UK and Exmar of Belgium to Iranian plans to bring LNG to market when international sanctions against Tehran are lifted in the new year. One option being discussed is to moor a barge-based FLNG off Kharg Island to speed up first production.
Iran flares an estimated 5.4 million mᶾ a day of natural gas linked to its oil production from the Forouzan oilfield. However, the government has long-term plans, stymied by international sanctions, to pipe this gas to a liquefaction plant to be built on Kharg Island, north of the port of Bushehr.
Officials say that a liquefaction plant at Tombak, 100km south of the port of Bushehr, is already more than half way to being completed. Prospective buyers for Iranian LNG include India, Pakistan, Brazil and Oman.
Last month, Muscat and Tehran announced a joint technical feasibility study to build a 200km subsea pipeline across the Gulf to get Iranian gas to market as LNG and to supply Oman’s growing domestic gas requirements.
Oman LNG’s Qalhat plant can process 10.4 million tonnes a year (mta) of LNG but exported just 7.9 mta last year. Oman could use this spare liquefaction capacity to enable Iran to export its gas as LNG.
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