Iran Liquefied Natural Gas Co., the country's maiden LNG project is poised to
begin exporting Liquidated Natural Gas (LNG) by the end of year 2012 after
tapping domestic funds to beat sanctions.
On the path we're on now, we don't have investment needs or technological needs, Iran LNG's Managing Director Ali Kheir-Andish said. "It's a challenging objective, but we are making all the efforts towards meeting this target," he added.
Iran holds 16 percent of global gas reserves and is the world's second largest producer of the fuel. While Iran is supplying most of it's rapidly developing neighbor Turkey with more than 90 percent of it's natural gas demand and planning and constructing many gas pipelines to export the fuel to regional neighbors such as Pakistan, India and Syria, the country wants also to develop the ability to produce the fuel in liquefied form for easier transportation to more distant markets. Indian Oil Corp., a state-run refiner in India and Zhuhai Zhenrong Co. of China have agreed with state-run National Iranian Oil Co. to buy the fuel.
"Domestic banks have become partners in providing the investment needed," Kheir-Andish said. Iran LNG has cost some $1.5 billion so far and will need a total investment of almost $5 billion upon completion, he added.
The company has secured the technologies it needs through contracts with foreigners, including companies in Europe, the executive stated. "We have the technology needed at our disposal," he said. "We concluded the contracts, and these are being executed."
Iran LNG is based in Iran's southern Bushehr province in the Pars II special economic zone. The gas it wants to chill into a liquid would come from South Pars, which together with the adjacent North Field in Qatar comprises the largest known gas deposit in the world.
Iran LNG expects to produce 8 million tons of the fuel in its first year of operation and foresees potential annual output of 10.8 million tons, Kheir-Andish concluded.
... Payvand News - 04/14/11 ... --