BG International signs Iranian LNG joint venture agreement
BG International, a unit of BG Group, announced on Monday that it had signed a joint venture with Iran's Oil Industries Engineering Construction Co. to 'pursue opportunities for the first liquefied natural gas export project in Iran.'
LONDON�BG International, a unit of BG Group, announced on Monday that it had signed a joint venture contract with Iran's Oil Industries Engineering Construction Co. (EIOC) to "pursue opportunities for the first liquefied natural gas (LNG) export project in Iran."
The joint venture follows BG signing a memorandum of understanding with EIOC�an affiliate of the National Iranian Oil Co.�in July to investigate a range of gas and oil projects.
The project is expected to cost in excess of $1 billion, making it one of the largest such joint ventures Iran has undertaken with a foreign company since the 1979 Islamic revolution in Iran.
LNG will be marketed initially to the growing gas markets in northwest India, where BG intends to develop an LNG import terminal at Pipavav in Gujarat state.
BG is also a shareholder in two gas distribution companies in India, reported the Iranian News Agency.
The former British state company said the joint project, which was expected to utilize gas from the huge South Pars field off Iran, could produce and export 6-7 million tonnes/year of LNG starting in 2006.
It said two potential sites had been identified for an export terminal in southern Iran�Asaluyeh and Kish Island�but that further evaluation was needed before determining the most suitable location.
The British company said it could not put a figure on the value of the contract, but a spokeswoman suggested that it may compare with the firm's Atlantic LNG project in Trinidad and Tobago, which cost around $1 billion.