Italian energy giant signs gas deal with Iran firms

SHANA– Italy’s Ansaldo Energia has signed a memorandum of understanding (MoU) with several subsidiaries of the National Iranian Oil Company (NIOC) for converting flare gas into electricity at the supergiant South Pars Gas Field.

A leading international player in the power generation industry, the Italian company signed the document on Wednesday with the National Iranian South Oil Company (NISOC), Pars Oil and Gas Company, Iranian Central Oil Fields Company (ICOFC) and Iran Fuel Conservation Company.

Based on the deal, the Italian firm will collect associated petroleum gas that is flared at Phase 12 into electrical power with the help of special turbines which have been manufactured for this purpose.

Giuseppe Zampini, president of Ansaldo Energia, Bijan Alipour, managing director of NISOC and Ali Vakili, Iran Fuel Conservation Company, signed the deal in Tehran on Wednesday.

The MoU calls for producing 600 megawatts of electricity in the first phase, which will be raised to the capacity of 1000 MW in the second phase of the project.

Phase 12 is South Pars’ biggest phase in terms of volume of activities as well as investment and production level. The field is estimated to contain 14 trillion cubic meters of gas.