October 15, 2008

Iran: abandonment of LNG to pipeline ... announced



Iran has decided to focus export gas by pipeline rather than in the form of liquefied gas (LNG). Reasons cited Monday by the responsible Ministry of Oil: several of its projects are still not signed. Blackmail for signature, financial difficulties? ... while Iran is - officially - restrained in developing its energy sector, following the sanctions that hit the country because of its controversial nuclear program. ( Finance Information City )

"The LNG projects whose contracts have been signed will be implemented, but we prefer to expand our capacity to export gas by pipeline," said Vice-Minister of Petroleum, responsible for planning, Akbar Torkan. "We prefer to transform the LNG projects in unsigned draft export pipeline," he added.
Iran plans to export up to 83 million tonnes of LNG per year, including these projects to enable it to expand the number of its export customers, particularly to China and Japan.
However, and this is where "the bottom could hurt", the technology of LNG requires considerable investment and know-how that only a few have mastered Western societies. Which seem to - officially - reluctant to engage Iran in particular because of political risks ... and American pressure. The United States can "simply" want to reserve a slice of the pie ...

Thus, the draft contract with the French Total in 2004 has not been finalized. The French group is engaged for years in negotiations with Iran to operate with the Malaysian Petronas gas reserves (block 11) in South Pars, which also provides for a facility producing liquefied natural gas ( LNG) and export of gas.

"It is out of question to stop this project, it is out of question to renounce or abandon," said last July the Director General of the French group Total, Christophe de Margerie in an interview to Channel France 24. He then referred to a "de facto freeze" the commitment of Total in this field shared between Iran and Qatar and regarded as one of the largest in the world. "We want to keep long-term relationships with our Iranian partner, had he added.

Because ultimately, Total will not abandon working with Iran ... which proves to be the world's fourth oil producer and second largest producer of gas, a strategic position, which - apart from hypocrisy - bigre interested in the European Union, seeking emancipation of Russian gas. Small reminder: the gas field of South Pars is deemed to hold around 14,000 billion m3, or 8% of world gas reserves.

In an interview with Financial Times, the Director General of the French group Total, Christophe de Margerie, had previously considered too politically risky to invest in Iran now, due to increasing tension between Tehran and Washington.


Another project that sleep is concluded but not signed in 2007 with the Anglo-Dutch Shell and Spanish Repsol for the production of LNG from phases 13 and 14 of South Pars.


The only project for the production of LNG has been signed with the Iranian Iran LNG, but we go ... the Ministry of Oil has said it would need a foreign partner to conduct the operation successfully. Then that this ad is primarily designed to "motivate" potential candidates ...

Remember also that Iran is currently a net importer of gas, due to a lack of investment in production and a strong and constant increase its consumption.

Iran is currently campaigning for the construction of a pipeline with a capacity of 110 million m3 per day to feed Europe. With a length of 1,800 km, it would link the Iranian port of Assalouyeh (south) on the shores of the Gulf, and the town of Bazargan (northwest), on the border with Turkey.

But its gas supply depends on the country's ability to generate a surplus of production.

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