Construction of Iran’s only LNG plant suspended
Baku, Azerbaijan, Jan. 31
By Fatih Karimov - Trend: Construction of Iran's only liquefied natural gas (LNG) plant is still suspended.
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, Iran's Mehr news agency reported on Jan. 31.
Although the company has received some money to manufacture the equipment, but the international sanctions have hindered the company to deliver the equipment to Iran, he added.
The first phase of the plant (65-percent complete) includes a 1,100-megawatt power plant, storage facilities for LNG and liquefied petroleum gas (LPG) as well as offshore docks.
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 is 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.