Iran Recovers Turbines, Looks Forward to Exports

Iran has recovered 30 of Siemens’ gas compressors that were intended for the South Pars gas project but were impounded.

On the sidelines of a meeting with Siemens CEO Joe Kaeser, Iran’s oil minister Bijan Zanganeh said Siemens had promised to speed up the delivery of compressors and turbines for gas extraction, which had been blocked by the sanctions, IRNA reported February 22.

Siemens is now free to form joint ventures with any Iranian company and export equipment using its brand to regional markets, including Iraq, Turkmenistan, and Kazakhstan, Zanganeh said.

The equipment was related to the South Pars gas project, LNG plant, and some refineries in the country, Zanganeh said, adding that releasing the equipment started after the lifting of the sanctions.

Meanwhile, Shana news agency quoted Zanganeh as saying that Siemens could be a good partner in helping Iran’s gas production growth. Siemens was already planning to work with Iran’s Oil Turbo Compressor Company, he added. 

Another German company, Linde, had negotiated with Iran to release equipment for Iran's giant LNG project, Iran LNG, Iranian officials said. Linde refused to deliver them in 2010 after EU imposed sanctions against the Iranian oil industry. Mehr news agency reported that Linde had funds to make the equipment but sanctions prevented its delivery.

Iran has invested $2.5bn in the 10.4 mn mt/yr Iran LNG project, now about half built. It needs the same amount again to complete the project, which it hopes to by 2019. 

Iran desk