News ID: 323394
Published: 0229 GMT August 10, 2022

Iran revives long-delayed LNG project despite U.S. sanctions

Iran revives long-delayed LNG project despite U.S. sanctions

Iran has revived a major liquefied natural gas (LNG) project that was delayed for years because of U.S. sanctions on the Iranian petroleum sector.

A subsidiary of the Iranian Oil Ministry said that it has obtained the government permit for an LNG production train that will have an output of five million tons per year (t/yr), Press TV reported.

Dubbed Iran LNG, the project is one of the three long-delayed LNG projects in Iran. It was in fact a third project approved over the past decade to enable Iran to start exports of natural gas on ships rather than through pipelines.

However, the project, which was initially planned to reach an output target of 10.8m t/yr, hit a snag in 2018 when the United States pulled out of an international deal on Iran’s nuclear program and imposed sanctions on the country.

The sanctions prevented a German supplier from exporting equipment needed in Iran LNG trains despite the fact that all preparations for the project had been completed by early 2017.

National Iranian Oil Company (NIOC) officials eye financing and attracting manpower for new projects, including North Pars. The North Pars development is envisaged in four phases, each phase with about 1.2 bcf/d of gas.

The LNG produced from one phase of this field would belong to Iran, while the revenue from the sales of LNG from the other two phases would belong to foreign investor. The foreign party will have authority to sell its LNG to its own buyers. The gas produced from one phase of this field would be used for domestic purposes and injection.

A report on the Oil Ministry news service Shana said that Iran’s Oil Pension Fund, which owns the Iran LNG, had carried out major changes to the management structure of the project over the past 10 months.

The report did not elaborate on whether the project will benefit from services of foreign companies. However, previous reports published in the local media had indicated that the Iran Liquefied Natural Gas Company (ILC), which is in charge of the project, had contracted the top domestic energy engineering firm MAPNA for a series of works under Iran LNG.



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