Report: Iran in talks with Norwegian firm over FLNG unit

Iran is reportedly in talks with a Norwegian company which would supply a Floating LNG facility, to be used for gas liquefaction in the Persian Gulf.

According to Tasnim News Agency, which used the image of Shell’s Prelude FLNG unit to illustrate the story, Iran’s vice president for finance and investment affairs of the National Iranian Oil Company (NIOC), was quoted by the media as saying that the FLNG unit would be used to support Iran’s exports of liquefied natural gas (LNG) to Europe and the Far East.

No further details have been revealed on the project, except that the Norwegian firm will send a ship “that will specialize for the same type of project to Iran’s ports in the Persian Gulf by March 2017”

Not the first FLNG talks

This is not the first time Iran has been linked with FLNG. As a matter of fact, the country has been in discussion with several European companies regarding the FLNG possibilities event before the lifting of the sanctions on oil and gas exports in January this year.

In November 2015, it was reported that Iran and Belgium had initiated talks for a possible floating LNG production unit off the Kharg Island in the Persian Gulf.

Additionally, in December 2015, Iran said it had finalized a deal with a French firm on a floating production of LNG from associated gas at an oilfield in the Persian Gulf.

According to the deal, the FLNG unit agreed on with the French will be able to produce 1 million tonnes of liquefied natural gas a year, and would be fed by the gas currently being burnt at the Forouzan oilfield which Iran shares with Saudi Arabia.

Production boost

Since the lifting of the sanctions, Iran has boosted its oil and gas production, and plans to increase its natural gas output to over 160 bcm in the current year.
According to Shana, Iranian oil ministry’s news service, the country’s petroleum minister Bijan Zangeneh this month said that Iran was aiming to raise its crude oil production to 4 million barrels a day, up from the current 3.2 million. The minister expects the 4 million figure will be reached by March 2017.

Offshore Energy Today Staff