BG International signs Joint Venture Agreement for LNG in Iran
BG International has signed a 50:50 Joint Venture Agreement (JVA) with the Oil Industries Engineering and Construction Company to pursue opportunities for the first liquefied natural gas (LNG) export project in Iran. OIEC is a partly-owned affiliate of the National Iranian Oil Corporation.
LNG would be marketed initially to the growing gas markets in north-west India where BG intends to develop an LNG importation terminal at Pipavav in Gujarat State. BG is also a shareholder in two gas distribution companies in India - Mahanagar Gas and Gujarat Gas.
The initial two-train project could produce and export six to seven million tonnes of LNG per annum from 2006.
The parties have identified two potential sites for an export terminal in south Iran - Asaluyeh and Kish Island - however, further evaluation of the sites will be undertaken by the joint venture partners to determine the most suitable location.
The project is expected to utilise gas from the huge offshore South Pars gas field which has over 200 trillion cubic feet of gas. The partners have submitted joint applications for development of phases 9/10 and 11/12 of the field.
This joint venture agreement follows a Memorandum of Understanding which was signed between the two parties in July this year, to investigate a range of gas and oil projects in Iran.
Source:BG-GROUP press office - 25 September,2000.