Baku, Azerbaijan, April 26
Trend:
Iran has signed a memorandum of understanding with Chinese Fortune Company on design and manufacturing of a liquefied natural gas (LNG) plant.
The trilateral deal was signed between the Research Center of Petroleum Industry (RIPI), Fortune and an Iranian investor, according to the oil ministry’s SHANA news agency.
Under the MoU, the sides will cooperate for construction of a mini LNG plant with output capacity of 500,000 tons per day.
The document envisages transfer of technology and providing engineering services by Chinese side to Iran.
Iran prefers exporting LNG to distant markets including the EU, but no agreement has been reached so far for construction of the plants for the purpose.
Launching the facilities will help Iran to diversify and expand its natural gas market, and take advantage of being the world’s largest natural gas holder.
The country’s solo LNG project, the 52-percent completed "Iran LNG" needs about $8-10 billion of investment to finalize and talks with foreign investors. Thus far, there have been no results.
Earlier Ali Kardor, the managing director of National Iranian Oil Company, said that the country targeted exporting 0.5-2 million metric tons per year (MT/y) of LNG using mini-LNG plants and floating LNG vessels (FLNG) - Iran’s alternative projects to export LNG.
The country has signed memorandum of understandings (MoU) with South Korean Kogas over the development of LNG projects as well as with National Energy Administration of China over developing mini-LNG projects as of now.