Italy's Enel to Buy Iranian LNG

Italy’s Enel has signed a memorandum of understanding (MoU) with National Iranian Gas Exports Company (NIGEC) for buying LNG from Iran.

Speaking with oil ministry news agency Shana, Ali-Reza Kameli, managing director of NIGEC said the MoU is the outcome of several months of talks. The MoU was signed in the presence of President Hassan Rouhani and Italian Prime Minister Matteo Renzi, who was on visit to Iran.

Tehran has planned several major LNG projects that will help it become a major player in global market. More than a decade of Western sanctions, which were lifted this year, led to shelving of a number of projects. Enel has indicated willingness to buy LNG from Iran once the country brings its LNG projects on-stream. 

Iran is also planning to use Oman LNG's spare capacity to export LNG to Europe and Asia.Iran and Oman have signed a gal deal under which Tehran will export gas via pipeline. Around 30 percent of the gas that Iran plans to export to Oman would be used for producing LNG.