Iran needs $4b for major LNG project: Min.

SHANA – Iranian Minister of Petroleum Bijan Zangeneh said Iran will need an investment of 4 billion dollars for completion of Iran LNG project.

Speaking following a ceremony to sign two memoranda of understanding (MoUs) between National Iranian Oil Company (NIOC) and Russian gas giant Gazprom here in Tehran on Wednesday, Zangeneh said cooperation of Iran and Russia, as the first and second holders of the largest gas reserves in the world, can be very determining in the global gas market.

“We held useful talks with the managing director of the world’s largest producer and exporter of natural gas,” the official said.

NIOC Managing Director Ali Kardor and Alexey Miller signed the documents in Tehran. One of the deals concerns a gas cooperation roadmap between NIOC and Gazprom and the other is about cooperation for construction if Iran LNG project with partnership of Iran’s Oil Industry Persian Fund.

Iran has signed several MoUs with the Russian energy giant this year including projects to develop Kish, North Pars, Farzad A and B fields.

Based on the deals, the Russian company will submit its proposed plans for developing the project to Iran, said Mr. Zangeneh.

“Repayment of the finances for developing these projects will be made by selling the produced gas and because of the fact that Gazprom is an experienced company it will consider gas exports either by launching pipelines or construction of plants to produced liquefied natural gas (LNG).”

Iran LNG project is an unfinished plant being developed for production of 10 million tons of LNG annually. Based on the MoU Gazprom signed today, the Russian giant will undergo feasibility studies from financial and technical perspectives for completing the project and offer NIOC its proposal for partnership in the project, Zangeneh said.

“Signature of this MoU is a major step for the presence and partnership of Gazprom in Iran’s gas development projects and the petrochemical ones to be fed by gas,” he added.

The official further said talks with Gazprom are ongoing on other projects, adding an investment of 4 billion dollars will be needed for completion of Iran LNP project.

Asked whether Iran and Gazprom will partner in gas exports, the official said, “All conditions will depend on future negotiations.”