• 3 minutes e-car sales collapse
  • 6 minutes America Is Exceptional in Its Political Divide
  • 11 minutes Perovskites, a ‘dirt cheap’ alternative to silicon, just got a lot more efficient
  • 12 hours GREEN NEW DEAL = BLIZZARD OF LIES
  • 5 days Does Toyota Know Something That We Don’t?
  • 5 days World could get rid of Putin and Russia but nobody is bold enough
  • 22 hours America should go after China but it should be done in a wise way.
  • 7 days China is using Chinese Names of Cities on their Border with Russia.
  • 8 days Russian Officials Voice Concerns About Chinese-Funded Rail Line
  • 8 days OPINION: Putin’s Genocidal Myth A scholarly treatise on the thousands of years of Ukrainian history. RCW
  • 8 days CHINA Economy IMPLODING - Fastest Price Fall in 14 Years & Stock Market Crashes to 5 Year Low
  • 7 days CHINA Economy Disaster - Employee Shortages, Retirement Age, Birth Rate & Ageing Population
  • 8 days Putin and Xi Bet on the Global South
  • 8 days "(Another) Putin Critic 'Falls' Out Of Window, Dies"
  • 9 days United States LNG Exports Reach Third Place
  • 9 days Biden's $2 trillion Plan for Insfrastructure and Jobs

Iran Prepares To Export LNG To Boost Trade Relations

Iran could ship its first export-bound cargo of LNG at the end of 2018, BMI Research said, after a JV between Iran’s Kharg Gas Refining Co. and Helma Vantage began talks with Belgian ship owner Exmar to charter its floating LNG vessel Caribbean FLNG for the short term.

The JV has already sealed a deal with the National Iranian Oil Company to deploy the vessel, which has a capacity of 500,000 tons of LNG. The JV will also be in charge of storing and transferring the future LNG cargoes.

The project is worth US$600 million, and BMI Research says that its volume will not be all too significant, but it would achieve a tactical purpose, allowing Iran to deepen its relationship with its partners in Europe and Asia, building the foundation of what could become a profitable business in a future where LNG will only continue to gain prominence over oil.

“Iran offers one of the fastest options to employ and monetise the currently redundant Caribbean FLNG vessel,” BMI said. “The facility was constructed to process natural gas, which has a high methane content of 97.6%. While the gas feed from South Pars is far wetter, with greater gas liquids and condensate content, methane from flared gas at nearby offshore projects is the targeted supply.”

Related: New Battery Design Could Crush Tesla

Iran’s ambitions in the LNG area are not new. There were plans to develop LNG production projects in place in the early 2000s. Western sanctions interrupted these plans, but now they are back on the table, unless the U.S. imposes new sanctions on the country, which is always a possibility under the current administration.

Until that happens, if it ever does, Iran has access to Western oil and gas extraction technology, and has a relationship with Total, among others. The French company signed the first new Iranian Petroleum Contract, for the development of the huge South Pars gas field. The French company has also previously expressed interest in acquiring the Iran LNG project.

By Irina Slav for Oilprice.com

ADVERTISEMENT

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage



Leave a comment

Leave a comment

EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News