Iran to enhance gas production, ready to supply gas to Kuwait, Turkey

Iran is geographically blessed when it comes to natural gas. The country has the world’s largest natural gas reserves. Therefore, Iran has been looking at various avenues to augment its gas production by attracting foreign and domestic investment, especially in its South Pars gas field.

The Islamic Republic of Iran is now geared to provide natural gas and liquefied petroleum gas (LPG) to Kuwait and Turkey.

Iran will supply gas to Turkey via a pipeline. The price of the exported gas will be arrived upon on mutually by the two countries.

Iran is also set to supply sulfur and LPG to Kuwait.

Moreover, the country is also seeking investments into its hydrocarbon projects from Kuwaiti financiers. The country has already submitted a package of oil and gas investment projects to Kuwaiti investors.

The draft model of new oil contracts was recently shared by Iran’s Oil Ministry, which is geared towards bringing in more foreign companies to develop Iranian hydrocarbon reservoirs.

Since foreign companies are no longer interested in “buy-back” contracts, the Iranian Petroleum Contract (IPC) will be replacing them to attract investors.

As per the IPC, National Iranian Oil Company (NIOC) is allowed to establish joint ventures for crude oil and gas production with international companies, which will be paid with a share of the output.

More LPG business opportunities will be discussed at 9th LPG Trade Summit coming to Dubai on 11-13 November, 2014.

Contact Ms. Huiyan at huiyan@cmtsp.com.sg or call +65 6346 9113 for more details.

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