The estimated $400 million contract with LG was cancelled after NPC failed to receive approval for the deal from the Higher Economic Council. The council in turn called on NPC to retender the project.

The full scheme is now being tendered in seven packages. They are the power generation unit, industrial gas unit, desalination plant, wastewater treatment plant, intake seawater cooling, offsite units, and the management and contract package. NPC has directly invited companies to bid on the project. They include France's Alstom, Germany's Siemens, state-owned Iran Power Plant Projects Management Company (Mapna)and LG for the 660-MW power generation facility. The bid deadline is 2 March.

It is understood that NPC is negotiating with two international firms, including Germany's Linde, the contract to set up the 20-tonne-an-hour industrial gas unit. The UK's Weir Westgarthis understood to be well placed for the desalination package.

The Mobin project is designed to supply power, steamed oxygen, fresh water and related facilities for petrochemical complexes at Bandar Assaluyeh, including the olefins 9 and 10 projects, the aromatics 4 and methanol 4 plants and an ammonia and urea unit.

The project is set to take 30 months to complete.