Iran Expanding Mini LNG Sector

A $20 million agreement between the National Iranian Gas Company (NIGC) and South Korea's Oceanus consortium, signed in Busan last week, to develop small-scale liquefied natural gas plants in Iran, also includes transfer of technical knowhow for construction of ISO containers used for transporting LNG by rail, sea, and road, said Saeed Pakseresht, the NIGC research and technology director.

"We do not have the technology to develop mini LNG plants, but joining hands with  companies like Oceanus consortium and KOGAS (South Korean's public natural gas company) is an important first step to develop our LNG sector," Pakseresht was quoted as saying by IRNA.

Production capacity of mini LNG plants varies from 2,000 up to 500,000 tons a year. By comparison, a typical large-scale plant has a production capacity of between 2.5 and 7.5 million tons.

With limited production capacity, mini LNG plants are suitable for the supply of small amounts of liquefied gas to far-flung regions using tanker trucks or ships.

The two sides will invest $10 million each in the joint venture and once the plan is completed, each side can independently embark on marketing the LNG output.

Elaborating on the terms on the contract, he said Iranian experts will visit LNG sites in South Korea to acquire the much-needed technology and in turn, the Southeast Asian country will send technicians to Iran to get familiar with the process of sweetening sour gas in refineries.