Iranian oil minister due in Germany to talk about LNG project

Oil&Gas Materials 6 May 2015 12:35 (UTC +04:00)

Baku, Azerbaijan, May 6

By Fatih Karimov - Trend: Iran's Oil Minister Bijan Namdar Zanganeh will leave Tehran for Germany to talk about the Iran LNG project with three German companies.

Zanganeh will negotiate with managers of the three Germen companies, i.e. Siemens, Linde, and Lurgi, to find ways for supplying the project with equipment, which had been banned after the imposition of sanctions against the Iranian oil industry, Iran's Mehr news agency reported May 6.

The three companies had participated in the development of Iran's South Pars gas field during the past two decades.

The oil minister is scheduled to deliver a speech at the Energy Security Summit 2015.

In January, Alireza Kameli, the managing director of National Iranian Gas Company, said that a German company has signed a contract to manufacture equipment for the LNG plant.

Although the company has received some money to manufacture the equipment, but the international sanctions have hindered the company's ability to deliver the equipment to Iran, he added.

The capital investment needed for Iran's first LNG plant is estimated at $5 billion. The facility would start its early production if half that sum were provided.

The plant would be able to produce 10.5 million metric tons per year of LNG, earning the country more than $20 million a day.

In March 2014 Iran LNG Company (ILC) filed a lawsuit with an international tribunal against the European Union (EU) for its "unilateral and illogical" ban on Iran's mainstream producer of liquefied natural gas.

Edited by CN