French firms ready for investing in Iran’s gas projects

Business Materials 6 June 2015 12:57 (UTC +04:00)

Baku, Azerbaijan, June 6

By Fatih Karimov - Trend:

Fifteen French companies, including Total, Technip, Schneider, and Vinci Energy have announced readiness to invest in Iran's gas projects.

Managing directors of the companies met with the managing director of the National Iranian Gas Company (NIGC) at the 26th World Gas Conference (WGC), which was held in Paris, Iran's Shana news agency reported on June 6.

NIGC managing director Hamid Reza Araqi said that the companies were members of the Movement of the Enterprises of France (MEDEF), which is the largest employer federation in France.

During the conference, NIGC presented 18 projects, such as the 9th and 11th cross country gas pipelines, the extension of the 7th pipeline, and gas storage facilities, to foreign investors, Araqi said.

During past years, the Islamic Republic has been making efforts to increase gas production and exports by attracting foreign and domestic investment to South Pars gas field.

Iranian officials say the country is keen to supply natural gas to Europe. European countries and Iran's neighbors are willing to buy gas from Iran as more gas projects are coming online.

Iran would see its gas production reach one billion cubic meters a day (bcm/d) in three years as new phases of the gigantic offshore South Pars gas field are coming on stream.

Iran's current raw gas production level hits reportedly about 660 mcm/d. The country has developed 10 phases of the giant South Pars gas field, which share about 8 percent of total conventional global gas reserves, while phases 12, 15 and 16 are commenced with half capacity.

South Pars was divided to 29 phases and the country is to increase gas production level to 720 mcm/d by the end of 2018 from South Pars.