European Firm Negotiates with Iran for FLNG Project
A large European company is negotiating with the National Iranian Gas Exports Company on a floating liquefied natural gas (FLNG) project.
Floating LNG can take natural gas to the coast, liquefy, store and transfer that to markets overseas.
Alireza Kameli, managing director of National Iranian Gas Exports Company, said the two sides will soon sign a confidentiality agreement in this regard, ILNA news agency reported on November 8.
He did not provide details about the European company, but said that once sanctions against the Islamic Republic are lifted and negotiations are finalized, [representatives of] the European company will travel to Iran.
Considering that FLNG is economically justified, Iran will move toward that, Kameli said.
In response to a question that does moving toward FLNG mean Iran has been disappointed from its LNG projects, he said: “It is not true. LNG projects are being followed up as well. FLNG is another option which is being followed up.”
Negotiations on gas projects around the world take between 6 months and one year in the most optimistic case, he said, adding that immediately after lifting of the sanctions, executive measure on exporting gas will start.
Kameli said on July 4th that Iran has been negotiating with the “world’s biggest company in FLNG shipping serving to transfer Iranian gas to Europe in 7 to 12 months.”
Kameli didn’t name a specific company, but it seems he has been referred to as saying “the biggest FLNG shipping server” to Royal Dutch Shell Plc, whose CEO Ben van Beurden travelled to Tehran in June. This company which has a $2.3 billion debt to Iran also owns the biggest FLNG ship in the world.
Meanwhile, Iran’s Deputy Petroleum Minister for Planning and Monitoring of Hydrocarbon Resources Mansour Moazzami said in October that Tehran will give priority to export gas to neighbouring countries with respect to Europe, which will still remain high on the Iranian agenda.
“FLNGs are opportunities for the private sector” he explained.