German engineering group Siemens has won a contract to supply 12 compressor trains for two onshore gas processing plants in Iran.

The contract is with engineering, procurement and construction (EPC) contractor Hampa Engineering Corporation for processing plants operated by Palayesh Parsian Sepehr.

Siemens said the contract is in the “high double-digit million euro range” and commercial operation will start by the end pf 2018.

The 12 compressor trains each contain a Siemens STC-SV vertical split compressor and will be used in two natural gas processing plants.

Ten of the 12 trains are for the Mohr hydrocarbon recovery plant, located in Fars Province in south-central Iran. The plant will process the gas into products such as ethane and other “C2+ hydrocarbons”. Some will supply the domestic gas market while other products will be piped 60 kilometres to Assaluyeh for further processing.

Four of these STC-SV compressors will be driven by Siemens SGT-700 gas turbines, which give the customer an especially high OPEX benefit, thanks to their reliability and efficiency. Four more compressor trains for the Mohr plant will be driven by Siemens SGT-100 gas turbines, and two others will be driven by an electric motor.

Siemens will supply another two compressor trains in Assaluyeh that will each be driven by a Siemens SST-600 steam turbine. The plant in Assaluyeh will produce feedstock for the petrochemical industry, including ethane, propane, and butane.

The deal is Siemens’ first major oil and gas order in Iran since nuclear-related sanctions against the Islamic Republic were lifted in January 2016.

Under-investment in the Iranian oil and gas sector during the years of sanctions has left it in disrepair and in need of technology from overseas to upgrade key facilities.

Siemens is also expected to sign a contract with Iran’s Mapna Group for the manufacture of electric locomotives, according to a recent report.