×
×
Project Insights

Iran in FLNG negotiations, but questions remain

Iran is in talks over the construction of FLNG projects that will help it reach its gas export targets. However, processing costs threaten to derail the projects Iran is in talks over the construction of FLNG projects that will help it reach its gas export targets. However, processing costs threaten to derail the projects.
By Verity Ratcliffe 16 May 2016 Middle East & Africa / LNG 0 20318
Iran may ramp up its gas exports more quickly by using FLNG instead of permanent facilities. (Iran LNG)

Iran is in negotiations with several companies for the construction of FLNG facilities along its coastline. However, the costs associated with treating the gas to required purity levels may mean such projects are not economically viable.

While Iran is responsible for identifying sites for FLNG projects and securing agreements with field operators to supply feed gas at set prices, it will be up to the FLNG developers to treat the gas, which will increase the cost of such projects. Iran wants to supply sour gas from...