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Iran to find new markets by developing LNG industry

Business Materials 19 December 2013 22:50
Iran can find new markets in distant countries by developing its LNG industry, the managing director of National Iranian Gas Exports Company, Alireza Kameli, said on Dec. 16.
Iran to find new markets by developing LNG industry

Baku, Azerbaijan, Dec. 16

By Rahim Zamanov - Trend:

Iran can find new markets in distant countries by developing its LNG industry, the managing director of National Iranian Gas Exports Company, Alireza Kameli, said on Dec. 16.

"Developing the LNG industry will help Iran realize its goal of gaining 16 per cent of the world's total gas trade," Kameli said.

He went on to note that the country's oil minister has also stressed the need to boost Iran's LNG industry.

"As the world's largest holder of gas reserves, Iran can not limit itself to rely on pipeline-based exports," Kameli explained.

In the fourth 5-Year National Develop Plan (2005-2009), the country aimed to produce 70 million tons of LNG from the South Pars, North Pars, Ferdosi and Golshan gas fields by launching six LNG production facilities.

Iran practically lost as much as 27 million tons of its LNG production capacity after canceling LNG project contracts with French Total, Spanish Repsol, Dutch-British Shell, and Malaysian Petronas in 2008.

Later in 2008, Iran signed $25 billion worth of contracts to develop its gas fields and produce LNG with the Chinese SINOC group, Chinese CEPA, Polish state-owned gas company (PGNiG) and Malaysian Petrofield LNG Co.

The value of Iran's contracts with PGNiG and Petrofield were respectively about $2 billion and $14-16 billion. Currently all these contracts have been suspended.

During the past few years, the LNG export amount has increased rapidly.

According to BP annual statistics published in June, about one third of the world's 1,025 bcm of total dealt gas in 2011 was LNG, amounting to 330.8 bcm, while LNG shipments grew by 10.1 percent compared to 2010.

Qatar, Iran's southern neighbor and partner in the South Pars gas field, with thanks to ExxonMobil, Total, Mitsui, Marubeni, ConocoPhillips and Shell companies has become the world's biggest LNG producer with 77 million tons (102 billion cubic meters) of LNG output annually.

Edited by C.N.

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