The first export-bound cargo of Iranian liquefied natural gas (LNG) will be exported at the end of 2018, BMI Research said, after a joint venture between Iran’s Kharg Gas Refining Company and Helma Vantage began talks with Belgian ship owner Exmar to charter its floating LNG vessel Caribbean FLNG for the short term, reported Oilprice.com on Friday.
The joint venture has already sealed a deal with the National Iranian Oil Company to deploy the vessel, which has a capacity of 500,000 tons of LNG. The JV will also be in charge of storing and transferring the future LNG cargoes.
The project is worth US$600 million, and BMI Research says that its volume will not be all too significant, but it would achieve a tactical purpose, allowing Iran to deepen its relationship with its partners in Europe and Asia, building the foundation of what could become a profitable business in a future where LNG will only continue to gain prominence over oil.
“Iran offers one of the fastest options to employ and monetize the currently redundant Caribbean FLNG vessel,” BMI said. “The facility was constructed to process natural gas, which has a high methane content of 97.6%. While the gas feed from South Pars is far wetter, with greater gas liquids and condensate content, methane from flared gas at nearby offshore projects is the targeted supply.”
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