Iran’s €700m LNG liquefaction deal signed

April 5, 2008

TEHRAN - Iran has signed a 700-million-euro ($1.1 billion) deal for the liquefaction segment of “Iran LNG” plant with Chinese and European consortia.

Ali Kheirandish the managing director of Iran LNG Company said that the value of LNG contract, consisted of three packages, is to the tune of 4.5 billion dollars.
The first LNG project of Iran was divided into seven packages, and the liquefaction contract was the last part of the project that remained unsigned, the managing director said.
The division into separate packages was designed to reduce the cost of the project, estimated at $4.5 billion, some 40 percent lower than the figure suggested by Total Corporation, he noted.
The project has so far progressed by 9 percent, he said and added that the required budget for the project is secured through the Foreign Exchange Fund and financing by the two contracting companies.
The project includes two production trains which will be fed 995 million cubic feet/d from phase 12 of the South Pars gas field. It is to yield 10.5 million mt/year of LNG.
Iran’s Rah Sahel will construct the jetty, South Korea’s Daelim will build storage tankers, the gas sweetening operations will be taken care of by Iran’s Farab, the off-site and utility segments will be handled by Iran’s Petro Sanat Maad and the power plants will be handled by Iran’s MAPNA.
Iran plans to float shares in Iran LNG and has been talking to Austria’s OMV and other European companies, to make them shareholders in the project in a bid to reduce its financial burden. Iran LNG will also produce propane, butane, gas condensates and sulfur