Iran: talks completed over Middle East’s first FLNG project

Two Iranian companies have reached a final deal with a French company on floating LNG production from associated gas from the Forouzan oilfield, according to Iran’s deputy petroleum minister, Roknoddin Javadi.

National Iranian Oil Company said in a statement on Monday that the three companies held negotiations in order to set up an FLNG unit, but Javadi, who is also the managing director of NIOC declined to reveal the names of the parties.

Javadi said that a joint consortium will be formed to build the first FLNG plant in the Middle East that will have the capacity to produce 1 million tons of LNG per year.

The plant would use around 200 million cubic feet of associated gas currently being burnt at the Forouzan oilfield Iran shares with Saudi Arabia.

Total investment in the project is estimated between US$800 million and US$1 billion, with the project expected to come online within two years, according to the statement.

LNG World News Staff