Japanese in IGAT talks

07 June 2002

Japanese trading house Mitsui & Companyis negotiating to provide finance to the National Iranian Gas Company (NIGC) for the IGAT 5 gas trunkline. The line will link phases 6-8 of the South Pars gas development scheme with the Aghajari oil field for gas injection (MEED 24:5:02).

The IGAT 5 project had initially been part of the development of South Pars phases 6-8, which is being carried out by the local Petropars, but was outsourced to reduce the financial requirements for the three-phase scheme. Mitsui, which last year expressed interest in taking a stake in South Pars 6-8, says it is pursuing IGAT 5 also as an independent project. However, no deal has been reached for IGAT 5 or phases 6-8.

The estimated $650 million IGAT 5 overland line will be more than 510 kilometres long and will deliver sour gas for reinjection into the Aghajari oil field. According to a preliminary study carried out by the UK's Foster Wheeler Energy, three compressor stations will feature along the trunkline.

It is understood that NIGC has selected the local Sadid Industrial Groupas subcontractor for the project. The consultant is the local Bonyad Mostas.

Mitsui is also negotiating to provide finance for the Kharg island gas-gathering scheme (MEED 3:5:02).

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