FLNG Negotiations With Belgium

FLNG Negotiations With BelgiumFLNG Negotiations With Belgium

Iran is in talks with Belgium to deploy the country's floating liquefied natural gas production facilities near Kharg Island in the Persian Gulf.

Oil Minister Bijan Namdar Zanganeh made the statement after meeting Belgian Secretary of State for Foreign Trade Pieter De Crem in Tehran.

"Belgium sees great opportunities in Iran's market after the sanctions … We can use Belgium's facilities to produce FLNG for the first time in Iran if we agree on technical and financial terms," the minister was quoted as saying by Shana on Monday.

He pointed to technical and engineering cooperation in environment and maritime sectors with Belgian firms before the US introduced tough sanctions against the Islamic Republic in 2011.

Iran and six world powers reached a historic deal on July 14 in Vienna, which would limit the Persian Gulf country’s nuclear program in return for removing sanctions on its energy and financial industries.

FLNG production includes all systems to enable offshore liquefaction of natural gas into LNG. An FLNG facility would produce, liquefy, store and transfer LNG at sea before carriers ship it directly to markets.

Iranian officials say investing in FLNG infrastructure is financially viable, because the cost of producing LNG offshore is relatively on a par with LNG production at onshore facilities.

"Brussels is also interested in making investment in the Persian Gulf country's petrochemical sector," Zanganeh said.

However, he ruled out the prospect of oil supply to Belgium and said the European country had never been a direct importer of Iranian crude.

Sitting on some of the world's richest hydrocarbon resources, Iran is keen to develop the LNG sector in the post-sanctions period.

In September, Zanganeh discussed LNG supply to Spanish terminals and, from there, to other European destinations. Later that month, LNG exports were also discussed with a Polish delegation in the capital Tehran.