Iran signs $16 billion prelim LNG deal with Malaysia

Reuters: Iran and Malaysia’s SKS have signed a $16 billion preliminary deal to develop Iran’s southern Golshan and Ferdos gas fields and build plants to produce liquefied natural gas (LNG), state television reported on Sunday. TEHRAN (Reuters) – Iran and Malaysia’s SKS have signed a $16 billion preliminary deal to develop Iran’s southern Golshan and Ferdos gas fields and build plants to produce liquefied natural gas (LNG), state television reported on Sunday.

“The preliminary agreement to develop the fields was signed with Malaysia’s SKS,” Gholamhossein Nozari, head of National Iranian Oil Company(NIOC) told state television.

“This contract includes $16 billion investment and will take 25 years to complete” he told semi-official Mehr news agency.

He said SKS would have a 50 percent share of the produced LNG.

“Some $11 billion will be spent on the LNG facilities, which will produce 20 million metric tons of LNG, and $5 billion will be spent on upstream development,” Nozari told the state television.

Iran has the second-largest natural gas reserves in the world after Russia, about 940 trillion cubic feet, and it has been planning to produce LNG from its reserves for sustainable exports revenue.

According to Nozari, the two gas fields contain 60 trillion cubic feet of gas.