Shell, Total sought Iranian gas below $0.08 per m3

Oil&Gas Materials 19 December 2015 21:50 (UTC +04:00)

Tehran, Iran, December 19

By Mehdi Sepahvand -- Trend:

Shell and Total had announced the costs of projects Persian LNG and Pars LNG so high that Iran would have had to sell them gas below $0.08 per cubic meter so that their production would be economical, former Iran LNG CEO Ali Kheirandish said.

That was why the two projects were cancelled as they would not be economically beneficial for Iran, he stated, Fars news agency reported.

The capex for Pars LNG had been announced to be $11.6 billion while that for Persian LNG about $16.5 billion, he stated.

Commenting on the features of the projects, Kheirandish said Persian LNG was intended to give an output of 15 million metric tons while Pars LNG's output was to be 10 million metric tons.

Total's Middle East and North Africa Director Stephen Michael in September said that his company, as one of the top five oil companies in the world, is ready to undertake all sorts of projects from LNG to petrochemical and oil extraction at sea and land after sanctions on Iran are lifted.

Kheirandish, however, said that if the companies offer prices as the low as they offered previously Iran would not make deal with them.