The Iranian oil minister said an agreement has been signed with German engineering company Linde to install a floating liquefied natural gas (LNG) export terminal on the Gulf coast, according to Iran’s Mehr News Agency (MNA).

Iran is planning to establish a total LNG export capacity of 12.5-13 million tonnes a year (t/y) after nuclear related sanctions are lifted, Oil Minister Bijan Zanganeh said.

Zanganeh added that Linde would supply the equipment when the removal of sanctions takes effect, which is expected to happen in the first half of 2016.

“Building of a floating LNG producing facility is in the current agenda, to which the gas from Forouzan oil rig will contribute as feed; we do not have plans to buy or lease an oil tanker, and a foreign contractor will provide the facilities,” Zanganeh said in an interview with MNA.

“Iran has the capacity to produce 12.5-13 million tonnes of LNG [after the sanction agreement comes in to effect]; even with plummeting oil and gas prices, no issue will rise about Iran’s LNG markets,” he added.

Iran was planning to build LNG export facilities in Assaluyeh as part of its development of the South Pars offshore gas field. However, the LNG projects have not started up on schedule with the field development.