Iran to Join LNG Club
Iran is projected to officially join the LNG Exporters Club in the next two years, managing Director of National Iranian Oil Company Rokneddin Javadi was quoted as saying by Mehr News Agency.
Establishing new LNG production units instead of constructing pipeline tops Iran's agenda for transferring gas to Europe, since economic calculations reveal LNG production is more economically efficient give the market's current state, he said.
Currently, natural gas transmission through pipelines for a distance over 2500 km is not technically or economically profitable, Rokneddin said.
Emphasizing that the setting up of LNG production in the country is affected by technology and investment, Rokneddin noted “accordingly, we have begun negotiations with countries possessing technology of gas liquefaction and production of LNG units .”
Meanwhile, three foreign companies are reportedly keen to purchase an Iran LNG Company plant to complete it.
A Chinese, an Arabian and a European company are keen to acquire an Iran LNG plant to complete it, accodring to a source, who said that Iran LNG plant needs "significant investment and it will take two years to complete".
This plant’s capacity is projected to be 10.5 million metric tons per year of LNG production, earning the country more than $7 billion annually.
Saeed Sabouri, an oil and gas market analyst, announced that the construction of LNG production units in Asalouyeh, Bushehr Province, has progressed by over 60% so far.
"Once sanctions are fully lifted, the project can establish Iran as one of the LNG exporting states with a production capacity of 10.5 million tons of liquefied natural gas per annum," he said.