Iran in FLNG negotiations, but questions remain

By Verity Ratcliffe 16 May 2016
Iran may ramp up its gas exports more quickly by using FLNG instead of permanent facilities. (Iran LNG) 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 associated fields to the companies, leaving them responsible for processing the gas for export.