China will soon join Iran's LNG industry

Senior Iranian LNG officials said Tehran is in talks with a Chinese consortium on the construction of a Liquefied Natural Gas plant.According to the President of Iran's LNG Company Ali Kheirandish, Chinese companies will likely finance the construction of an LNG plant in Assalouyeh, Bushehr province. Kheirandish said that construction of units 1 and 2 of the Iran LNG plant has been launched. The production capacity of the plant will rise to 21 million tons per annum once the 4 units of the plant come on stream. So far about $1.8bln have been invested in the two initial units of the plant. He added that Iran intends to export 30% of its LNG to European countries but China and India will definitely be the main target markets in the long term. Iran aims to increase its share in the global gas market to 10% and become a major LNG supplier by producing 70 million tons of liquefied natural gas by 2015. Meantime, the marketing manager of the National Iranian Gas Export Company Alireza Qassemi Javid said that 7 LNG production projects are being developed in the country in an effort to reach the target. Also, the Director-General of the National Iranian Oil Company for International Affairs Mohsen Qamsari said that the country is developing its LNG industry as an alternative to crude oil exports. Domestic production of LNG will increase Iran's bargaining power when signing gas pipeline contracts. He said that the global energy market is dominated by LNG and although the National Iranian Oil Company is one of the world's biggest oil producers we are firm about production of liquefied natural gas. Global natural gas reserves have grown by 230% in the past three decades while oil reserves have only increased by 2.7%. Qamsari said that "We must try to gain control of Indian and Chinese LNG markets which are close to our country and account for 45% of LNG consumption in the world." He said that the global natural gas consumption will go up 1.5% by 2030 specially in Asia and Pacific while crude oil consumption is expected to only increase by 0.9%.