Last Part of Iran LNG Contract to Be Inked Feb. 28

A00870801.jpgTEHRAN (FNA) Iran LNG Co. Managing Director Ali Kheir-Andish said the last part of Iran LNG contract would be finalized and signed on Feb. 28.

“We are holding negotiations with one Asian and three other foreign companies on the project now,” PIN quoted the official as saying.

He said the Asian company had voiced its readiness to finance the liquefaction operations of the project, adding his company had delivered the documents on the liquefaction method to some companies for further information and more companies would be informed of the terms and conditions of the project in the future.

Kheir-Andish said German, Italian, and French companies had also expressed their preparedness to participate in Iran’s oil and gas projects.

“Some of these companies that are working in the equipment, engineering, and contracting affairs were not keen to hold talks with Iran in the past months, but now they have shown interest in cooperation with the country,” added the official.

The managing director had already announced that “Iran LNG” project aimed to produce 11 million tons of liquefied natural gas by 2010 and the figure would soar to 88 million tons by 2020.

Kheir-Andish made the remarks in a ceremony to sign the contract on power plant and electro compressor of Iran LNG project.

He said Iran LNG project would double its output every three or four years without any domestic and foreign investments.

“If the project comes on stream in Dec. 2010, its LNG production capacity will reach 22 million tons in June 2014, will hit 44 million tons in Dec. 2017, and touch 88 million tons in 2020,” said the official.

He, however, said the LNG output in the years to come would depend on Petroleum Ministry’s policies.

Packages 2 and 3 of Iran LNG project were signed last Feb., recalled the official, adding a contractor was to be hired for the first package, but the attempt failed and Package 1 was divided into four smaller packages.

He expressed hope that LNG export would be a suitable replacement for oil export through the implementation of Iran LNG project.

Kheir-Andish said Package 1 comprised four sections and Iran Power Plant Projects Management Co. (MAPNA) took the responsibility of power plant and electro compressor sections after several sessions and negotiations.

He added e-LNG section constituted 30 percent of Iran LNG project and Iran LNG project made a 50 percent progress after the signing of contract with MAPNA and the related operations’ progress would soar to some 70 percent when the contract on gas sweetening was inked.

He expressed hope that Iran LNG project, due to support from Petroleum Ministry, contractors, and advisors, would become operational by the end of 2010 and the first LNG carrier would ship the first liquefied natural gas cargo at that time.

Given the recent contracts signed for the Iran LNG project, the country would export 12 billion dollars worth of LNG per annum and the figure would reduce to 5 or 6 billion dollars in case next contracts were not desirable.

Kheir-Andish said Iran LNG project needed a four billion dollar fund and its turnover would amount to six billion dollars.

According to him, e-LNG project was comprised of a combined cycle power plant with a 840 megawatt capacity, subsidiary installations, and six 70 MW electro compressors.

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