Iran LNG Lines Up Two Consortia For EUR700 Million Contract To Construct Liquefaction Units

Iran LNG Company (Iran LNG) has lined up two consortia to contend for a EUR700 million contract to construct the liquefaction units at the center of the twin-train 10.5 million tons per year Iran LNG export scheme. The two consortia were: Pars International Development and Engineering Company (PIDECO) and WorleyParsons Limited; Farab Company and Hua Fu Engineering Company (HFEC).

“These two groups have to compete with each other, despite the fact that agreements have been reached with both,” Iran LNG Managing Director Ali Kheirandish said. “An opportunity has been given to them both to present the latest innovations and improvements to prove their superiority. Once this has been established, the agreement will be given fully to that side which has proved itself worthy.” The Iran LNG plant will be constructed on Tombak Island, and is projected to include Linde liquefaction technology.

Iran’s Deputy Oil Minister, Ali Kordan announced that the Iran LNG project was planned to be on-line in January 2011 with a total cost of $4.35 billion for the downstream facilities. The liquefaction plant will be developed in two phases.

Kordan said that 995 million cfd of gas for the liquefaction plant would be offered from Phase 12 of the South Pars gas field. Iran LNG has already given a gas sweetening plant contract to Farab, a project management contract to Spain’s Socoin, and an LNG and LPG storage facilities contract to Daelim. The Petropars subsidiary of the National Iranian Oil Company (NIOC) is developing South Pars Phase 12, and has held discussions with Oil and Natural Gas Corporation Limited and Hinduja with a view to take part. OMV Aktiengesellschaft has also reached a preliminary agreement with NIOC to take a 10% stake in both the South Pars 12 and Iran LNG projects. NIOC’s National Iranian Gas Export Company (NIGEC) holds a 49% stake in Iran LNG, with the rest 51% with two NIOC pension funds. NIOC intends to offer 40% of the Iran LNG equity to the private sector.