To export liquefied natural gas, Iran needs investment, modern technology and sustainable output, rapporteur of the Majlis Energy Commission said.
“Production of LNG should be sustainable so that Iran can strike deals with potential customers,” Asadollah Qarekhani was also quoted as saying by ILNA on Saturday.
Qarekhani added that if companies possessing state-of-the-art technology, such as those in Russia and France, participate in Iranian LNG projects, the country will be able to indigenize the know-how through reverse engineering—a process to discover technological principles of a device or a system through the analysis of its structure, function and operation.
According to the rapporteur, Iran currently supplies gas to its neighbors Iraq and Turkey via pipeline and to Armenia via road.
“If Iran targets farther destinations for gas export, it should be implemented by LNG vessels, which is not currently feasible due to the lack of know-how and finance,” he said.
Qarekhani stressed that Iran has no significant LNG output now.
Mass Production
The rapporteur noted that it will take three to four years for Iran to start mass producing the commodity.
“We can now produce small volumes of LNG, however mass production is currently not cost-effective for Iran with regard to the high cost of shipping and other technical factors,” he said.
Not all experts agree with the non-feasibility of LNG export for Iran.
Mohammad Hossein Adeli, the former secretary-general of Gas Exporting Countries Forum, told Shana last month that Iran should focus on LNG exports, as shipment of liquefied gas is less risky compared to piped exports and is more cost-effective for long-distance consignments.
Adeli added that the completion of its largest LNG venture, known as Iran LNG, will change Iran into a major player in the global gas market.
Reportedly, the Iran LNG project, at Tombak Port, approximately 50 kilometers north of Asalouyeh Port in Bushehr Province, has made 60% progress with an investment of $1.85 billion. Talks are underway to complete it in two years at a total cost of $3 billion.
"Undertaking incomplete projects and devising plans to develop new initiatives for producing as much as 50 million tons of LNG per annum can help guarantee the country's share of natural gas exports in international markets," Adeli said.
Adeli believes that there is no consensus among Iranian officials over gas export.
"As long as Iranian officials do not adopt a unified policy on the issue, devising a long-term roadmap to attract investment to implement new plans will be next to impossible," he said.
