Iran plans to build 5 LNG plants

Oil&Gas Materials 24 November 2015 15:40 (UTC +04:00)

Baku, Azerbaijan, Nov. 24

By Khalid Kazimov - Trend:

Iran is set to increase its share in the global gas trade markets by increasing the production of its liquefied natural gas (LNG).

The head of the National Iranian Oil Company Hamid Reza Araqi said that Iran is expected to launch five LNG projects within the next three years, oil news agency Shana reported Nov 24.

Currently Iran is exporting gas to Turkey (8.9 bcm/y), barters with Armenian power and swaps with Azerbaijan. Tehran also contracts with Iraq to export 50 million cubic meters per day of gas (18.25 bcm/y) Baghdad and Basra by 2017.

According to Araqi, Iran's capacity for producing gas will reach 330 billion cubic meters per year (bcm/y) and eventually its exports will surge.

Currently Iran produces about 202 bcm/y of natural gas.

Tehran sees LNG as becoming more viable than piped gas, which requires a great deal of time and high costs to reach Europe.

Iran has already developed an LNG plant by 50 percent and it is expected to become operational in 2018 with 10.5 million tons annual production capacity.

Earlier in Nov. 15 Ali Kardor, an Iranian oil official, said that three foreign companies have submitted proposals for producing liquefied natural gas (LNG) from flaring gas in Iranian oil fields in the Persian Gulf. He didn't give further information about those companies.

The projects envisage converting 5.66 million cubic meters per day of flaring gas to LNG in mini LNG plants, adding that an anticipated $800 million-$1 billion is to be invested in the projects by foreigners, Kardor underlined. The production on these mini LNG plants is to be used inside the country, not for export.