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Iran expects to bring five LNG projects online in the next three years

Iran expects to bring five LNG projects online in the next three years, including a liquefaction facility which is 60% complete, head of the National Iranian Gas Company (NIGC) says. 

The country has the world’s largest gas reserves but Western sanctions have hampered plans to build Iran’s first facility for freezing gas for export by special tankers.

NIGC Chief Executive Hamidreza Araqi is hopeful that the most advanced project, Iran LNG which began construction in 2007 with a capacity to produce 10 million metric tons a year, would become operational in the next one and half years.

“Among the five LNG plants under construction, the so-called Iran LNG has 60% physical progress and we hope to complete it in the next one and half years after finding an investor and enter the LNG market thereafter,” he said.

Several European companies have proposed to participate in the projects but negotiations have yet to be finalized, Araqi said on the sidelines of a high-profile summit of Gas Exporting Countries Forum in Tehran.

The resumption of the three projects along with Iran LNG and another plan to build a facility for floating production of LNG will create a capacity for 40 million metric tons of frozen gas a year which Iran seeks to export entirely.

Iran is reportedly looking into a plan to pipe its natural gas to Oman and have it liquefied there for exports to international markets.  

To the same effect, energy authorities from Iran and Oman have agreed to undertake a joint technical feasibility study on the construction of a 200-kilometer subsea pipeline across the Persian Gulf.

Although Iran is itself considering construction of its own liquefaction plants, making use of the Qalhat facility offers the fastest route to materialize Tehran’s LNG export ambitions, LNG World Shipping reported.

Reference: http://www.beg.utexas.edu/energyecon/lng/LNG_introduction_06.php

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