Iran, South Korea gas companies ink deal on pipelines construction

Business Materials 2 May 2016 11:35 (UTC +04:00)

Baku, Azerbaijan, May 2

By Khalid Kazimov - Trend:

South Korea's state-run Korea Gas Corp (KOGAS) and National Iranian Gas Company (NIGC) have signed a memorandum of understanding (MoU) on constructing three major gas pipelines in the Islamic Republic.

Azizollah Ramazani, the National Iranian Gas Company's manager for International Affairs, said that Iranian and South Korean gas companies have held negotiations over the past three months to discuss cooperation, SHANA news agency reported.

According to Ramazani the two companies will cooperate in the construction of 9th and 11th cross-country gas pipelines as well as a seabed pipeline for supplying Iran's gas to Oman.

He further added that the two companies will also work on mini LNG, CNG projects, as well as research and development projects.

On May 1, South Korean President Park Geun-hye heading a large business delegation arrived in Tehran on a historic visit. Park Geun-hye is the first South Korean president who visits Iran.

During the three-day official visit, the two countries are expected to sign contracts worth $13 to $17 billion for cooperation in various fields including the construction of hospitals, dams, railways and power plants as well as petrochemical, crude oil, infrastructure and industrial projects.

Iran-South Korea trade turnover stood at $6.1 billion in 2015. The figure was $17.4 in 2011, Before Western countries imposed sanctions against Iran.

South Korea is among the largest importers of Iranian oil.