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Building LPG Reservoirs Overseas to Promote Exports

Building LPG Reservoirs Overseas to Promote ExportsBuilding LPG Reservoirs Overseas to Promote Exports

The Iranian Commercial Gas Company (ICGC) is to build liquefied petroleum gas (LPG ) reservoirs overseas with the aim of facilitating export, said Mohammad Ali Barati, IGCC managing director, Tasnim news agency reported.

Referring to the issues related to long-term gas exports, he noted, "In order to avoid export challenges, effective steps need to be taken along with intelligent forecasts. For this reason the National Iranian Gas Co. is planning to build special reservoirs in targeted markets, namely China and Oman, not only due to their high consumption but also strategic location. The project is deemed crucial and experts are conducting the feasibility studies."

"As a matter of fact, the private sector is expected to fund and execute the project" Barati said, adding that currently preliminary surveys are being undertaken and negotiations are already underway with private firms.

Expressing hope that the new reservoirs will come on stream in the near future, the official reiterated, "We are doing our best to attract private companies because we believe without their contribution such projects cannot be implemented." The official did not say why he considered private businesses so instrumental to such overseas ventures.

Iran and the Sultanate of Oman have close diplomatic relations. Muscat, which has always tried to remain impartial in most regional conflicts, maintains cordial ties with all regional powers, namely Iran. The Persian Gulf sultanate has played a crucial intermediary role in Iran's nuclear energy program, facilitating negotiations between Tehran and the western powers.

In 2013, Iran signed a memorandum of understating to lay a deep-sea pipeline for gas exports to the neighboring sultanate within a short-time frame. Nonetheless, the proposed 260-km pipeline has yet to be built, which could take almost 3 years to be completed. The agreement, estimated at $60 billion, calls for supply of 20 million cubic meters of natural gas per day to Oman for 25 years.

Liquefied petroleum gas or liquid petroleum gas (LPG), also referred to as simply propane or butane, are flammable mixtures of hydrocarbon gases used as fuel in heating appliances, cooking equipment, and vehicles.

 

Financialtribune.com