NIOC: Iran FLNG talks finalised

Iran’s Deputy Petroleum Minister and Managing Director of National Iranian Oil Co., Roknoddin Javadi, has said that a final agreement has been reached between two Iranian companies and a French firm regarding floating LNG (FLNG) production from associated gas at an oilfield in the Persian Gulf.

A statement from National Iranian Oil Co. (NIOC) has quoted Mr Javadi as saying that the two companies will form a consortium to build the Middle East’s first FLNG plant with a production capacity of 1 million tpy of LNG.

The plant’s feedstock will come from the gas currently being burnt at the Forouzan oilfield, which Iran shares with Saudi Arabia.

Head of investment at NIOC, Ali Kardor, said that the project is expected to take two years to come online, with a foreign developer to be allowed to use the produced gas for a further three years.

Iran is planning to build capacity to export 40 million tpy of LNG.

Edited from press release by Callum O'Reilly

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