National Iranian Gas Export Company to announce EPC tender
Posted: 28 January 2004
The National Iranian Gas Export Company (NIGEC) is set to make
an EPC tender announcement for a liquefied natural gas (LNG) facility
at Bandar Tombak later this month or early February.
The contracts will be worth more than US$1 billion, and hopefuls
include Hyundai Engineering and Construction Company, JGC Corp.
and Chiyoda Corp. of Japan, France-based Technip-Coflexip, Foster
Wheeler Energy of the UK, Italy’s Snamprogetti and German
technology firm Linde.
The two-train LNG facility, known as NIOC LNG, will produce nearly
10 million tonnes per year.
BG Group already has an in-principle agreement for a minimum 25
per cent stake and is currently negotiating final partnership terms
with NIGEC.
BG is thought to have lined up a buyer for at least 5 million tonnes
of LNG per year, a crucial factor in the viability of the project
in what is becoming an increasingly competitive market. Potential
markets could include India, Japan, South Korea and China, where
gas demand is accelerating rapidly.
LNG exports will compete with a variety of pipeline export projects
as the most effective way of utilising and monetising Iran’s
stranded gas. A feasibility study on linking a network of pipelines
to carry natural gas to Austria from Iran has received European
funds, according to Austrian firm OMV, which is leading the plan
to transport Iranian gas through Turkey and Eastern Europe.
The long-debated Iran-India pipeline via Pakistan also received
a boost two weeks ago when Pakistan confirmed that it would import
1.5 billion cubic feet per day of natural gas from Iran by 2010
through a major pipeline. The pipeline would carry at least 3 billion
cubic feet per day, with the other half being bought by the Indian
market.
Oil-rich Kuwait is hoping to utilise gas as feedstock for its electricity
generation plants, freeing up oil for export, and plans to import
1 billion cubic feet per day of natural gas from Iran.
In addition to these export routes, Norway’s Statoil and South
Africa’s PetroSA are making significant headway with plans
to utilise GTL technology in Iran and many believe that this will
eventually be the most cost-effective and environmentally friendly
way to monetise Iran’s gas.
All these issues are to be addressed in detail at NIGEC’s
First Iran’s Gas Export Vision Conference, taking place in
Tehran on 25 & 26 April 2004.
In addition to a heavyweight delegation of Iranian officials, including
Minister of Petroleum Bijan Zanganeh and Minister of Economy and
Finance Tahmaseb Mazaheri, speakers include potential gas buyers
George Verberg, CEO of Netherlands’ GasUnie and Proshanto
Banerjee, Chairman of GAIL (India) Ltd, plus major regional figures
Mehmet T Bilgic, Chairman of Turkey’s BOTAS, Nader Sultan,
Managing Director of KPC and Nasser Jaidah, Director of Oil and
Gas at QP.
Potential gas investors BG, Total, Shell and Statoil are sponsoring
the conference.
For more information on this conference see www.thecwcgroup.com
Posted by Richard Price,
Editor Pipeline Magazine
Information supplied by companies
or PR agencies who are responsible for content. Send press releases
to info@pipelinedubai.com |
