28 May 2007 - 21:31
  • News Code: 105805
“Iran LNG” Project to Be Signed Next Month

TEHRAN – “Iran LNG” project is undergoing its final stage and its contract will be inked within next month.

Iran LNG Company managing director made the statement and said the project was postponed in hope of preparing the conditions and receiving the state approvals.

“We have signed the draft contract with a foreign contractor and the main contract will be signed within the next month,” Ali Kheir-Andish reiterated.

“Iran LNG, a project which is producing liquefied natural gas (LNG) from Phase 12 of South Pars (SP) field will sell 75 percent of its products in advance in 2008,” said the official.

“The project consists of three packages namely sweetening and liquefying operations, the construction of LNG and LPG storage tanks, and the construction of port and dock facilities.”

Kheir-Andish added that the third package was in progress.

A $500 million contract on ‘Iran LNG’ was signed last February.

The contract was inked by Iran’s Khatam-ul-Anbia Construction Headquarters (KOA) – an engineering arm of the Islamic Revolution Guards Corps (IRGC) – and South Korea’s Dailem. 

Iran LNG is to produce 10 million tons of LNG per annum plus 700,000 tons of liquefied petroleum gas (LPG) and 300,000 tons of condensates per year.

Kheir-Andish said that talks were being held on the implementation of the first package of the project, the sweetening and liquefying operations.

He added that the basic design of the project had been carried out by a consortium of French and Japanese companies under the supervision of the National Iranian Gas Company (NIGC), a subsidiary of the National Iranian Oil Company (NIOC).

Akbar Torkan, the managing director of the Pars Oil and Gas Company had already said that the POGC and the Petropars — two NIOC subsidiaries — were the contractor and subcontractor of the upstream part of the Iran LNG, respectively.

He added that the downstream operations of the project would be implemented by the NIGC.

Kheir-Andish said that the Iran LNG Project is scheduled to come on stream in 2010.

He added that the NIOC holds 49 percent of the shares in the Iran LNG Project, with the rest shared by the Oil Industry Investment Company (OIIC) and Oil Industry Pension Fund. The shares of the two are planned to reduce to 11 percent, and then the remained 40 percent will be granted to purchasers and investors in the project.

Iran is pursuing two more projects to produce LNG from the South Pars phases, which are termed Persian LNG and Pars LNG. On the Persian LNG, Iran signed a preliminary deal worth $4.3 billion with Anglo-Dutch Shell and Spain’s Repsol. The final investment decision (FID) of the project is valued at $10 billion, which will produce LNG from phases 13 and 14.

 

 

News Code 105805

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