European companies, deterred by heightened tension over Iran's nuclear programme, have now shelved immediate plans for...
Iran’s vast gas reserves will remain largely untapped so long as Western companies are scared off by political tensions and US sanctions stop Tehran from getting the technology it needs to develop them alone.
European and Asian energy companies had been lining up to invest in Iran’s gas industry, with the lure of the world’s second-largest reserves countering pressure from the United States to stay away. But European companies, deterred by heightened tension over Iran’s nuclear programme, have now shelved immediate plans for multi-billion-dollar liquefied natural gas (LNG) export projects, although they still yearn for Iran’s gas riches.
“Iran now has no access to foreign majors’ technology for any of its LNG projects, and will find it impossible to import equipment and develop expertise on its own under the current sanctions,” Samuel Ciszuk, Middle East energy analyst at Global Insight, said.
“The narrow group of international companies that have experience of managing the construction of a liquefaction plant makes it close to impossible for Iran to proceed on its own,” Ciszuk said after France’s Total reiterated last week it would not spend any more on Iranian gas projects for now.
Iran has not yet exported any LNG but says it will be able to produce 77 million tonnes a year by 2014, more than double the amount the world’s leading exporter, Qatar, is producing after nearly two decades of steady investment.
