National Iranian Gas Company and German conglomerate Siemens have signed a memorandum of understanding for upgrading the Iranian natural gas industry's rotating equipment.
Speaking on the sidelines of a ceremony to conclude the agreement in Tehran, NIGC Managing Director Hamidreza Araqi said the MoU calls for Siemens' cooperation with NIGC to renovate and enhance the efficiency of gas turbo compressors, Mehr News Agency reported.
According to Araqi, the two sides also reached an agreement on meeting Iran's future needs for state-of-the-art machinery, much need not only to modernize the gas industry but also to increase gas output.
"There are no restrictions on supplying Iran with oil equipment," Siegfried Russwurm, Siemens' chief technology officer, said.
"With respect to Siemens expertise in oil, gas, energy, railroad and transportation sectors, there are a plethora of investment opportunities in the Persian Gulf country's untapped energy sector and we have already embarked on negotiations to finance them."
Ali Akbar Shabanpour, managing director of Pars Oil and Gas Company, had already announced that the first batch of high-tech turbines and compressors blocked by Siemens due to international sanctions was released and unloaded in Asaluyeh, Bushehr Province
Oil Minister Bijan Namdar Zanganeh had earlier said some 30 turbines and compressors were blocked by Siemens, which would be used not only in South Pars Gas Field facilities but also in Iran LNG and Persian Gulf Star refineries.
Highlighting the importance of the cargo, Zanganeh had predicted that as soon as the equipment was installed, natural gas and gas condensates production chain will be completed and production capacity would experience a considerable rise.
"A new chapter of cooperation has commenced with Siemens and joint ventures have been launched," Zanganeh said.
Power Cooperation With Siemens
Houshang Falahatian, deputy energy minister, said Iran and Germany are all set to sign an agreement worth $11.5 billion, which calls for expanding electricity collaboration between the two states mainly in three sectors.
Elaborating on the agreement, the official said, "Serious negotiations are underway between Iran and Germany's power commission, focusing on three fields, namely power plant construction, F-class turbines' knowledge transfer and building substations with gas-insulated switchgear. As soon as German Vice Chancellor and Economy Minister Sigmar Gabriel arrives in Tehran in the near future, the MoU will be signed."
Falahatian noted that preliminary agreements have been reached to transfer the much-needed technical know-how to build F-class turbines to Iran and Siemens is willing to play a major role in implementing power plant projects in Iran.
The official believes that an annual investment of $5 billion is required to implement power development plans in the country, which explains why German enterprises can take advantage of the economic opportunity.
On the construction of cutting-edge GIS substations, Falahatian said plans have been made to launch the joint venture as soon as Germany opens the much-needed credit line.
"Apart from Germany and South Korea, negotiations have also been held with international investors who have shown interest in funding electricity projects," he said.
