Pars LNG FEED nears

16 September 2005
The front-end engineering and design (FEED) package for the Pars liquefied natural gas (LNG) project is likely to be completed in October, allowing the engineering, procurement and construction (EPC) tender to be issued. However, contractors are not likely to be called to bid for several months (MEED 15:7:05).

The FEED, carried out by Paris-based Technip, is for two trains, each with capacity of 5 million tonnes a year (t/y). The two units are to be built consecutively, with a period of one-two years between the first and second trains. The FEED for the related upstream phase of the South Pars gas field is being done by France's Doris Engineering.

Pars LNG is a consortium of National Iranian Gas Export Company (NIGEC), France's Totaland Malaysia's Petronas, which earlier this year reduced its shareholding in the project. The companies signed a framework agreement for both the LNG and upstream elements of the project last December. NIGEC is a subsidiary of National Iranian Oil Company (NIOC). However, the project cannot realistically move forward until the appointment of a new oil minister, who will confirm the government's intentions towards the scheme (see Special Report, pages 44-45).

A rival project, NIOC LNG, is being promoted by NIGEC alone. However, the company has signed agreements with potential Indian offtakers for the sale of 7.5 million t/y of LNG and is also in discussions with other Asian and European partners. The engineering process for that project suffered a setback when the compressor supplier withdrew from Iran.

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