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LNG Exporters Club Membership in 2 Years

LNG Exporters Club Membership in 2 YearsLNG Exporters Club Membership in 2 Years

Iran is projected to officially join the LNG Exporters Club in the next two years, managing Director of National Iranian Oil Company said.

"Establishing new LNG production units instead of constructing pipeline tops Iran's agenda for transferring gas to Europe, since economic calculations reveal LNG production is more economically efficient give the market's current state," Rokneddin Javadi was quoted as saying by Mehr News Agency.

"A pipeline to stretch over nearly 4,000 kilometers is required to deliver natural gas to European states, but given the status quo, transferring natural gas over distances longer than 2,500 km is not economically and technologically justifiable," he said, ruling out plans regarding pipeline construction for supplying gas to Europe.

Stressing that launching new LNG production units necessitates advanced knowhow and major investments, Javadi said negotiations have been held with states possessing the technology to produce, liquefy, store and transfer LNG.

Saeed Sabouri, an oil and gas market analyst, announced that the construction of LNG production units in Asalouyeh, Bushehr Province, has progressed by over 60% so far.

"Once sanctions are fully lifted, the project can establish Iran as one of the LNG exporting states with a production capacity of 10.5 million tons of liquefied natural gas per annum," he said.

According to Sabouri, over the past few months, the Islamic Republic has reached agreements with three major European states regarding transfer, transit and storage of gas.

Last month, Oil Minister Bijan Namdar Zanganeh discussed LNG supply to Spanish terminals and, from there, to other European destinations. Later that month, LNG exports were discussed with a Polish delegation in the capital Tehran.

In addition, French oil and gas giant Total has also expressed interest in buying and marketing Iranian LNG.

However, the export will take effect once several the LNG production units in Iran become operational.

According to plans, the country's gas exports, including LNG, should rise to 80 billion cubic meters per year by 2021.

Financialtribune.com