Iran has said that it is working on plans with some foreign companies to use floating gas liquefaction facilities (FLNG) in the country’s Persian Gulf coasts. Ali Kameli, managing director of the National Iranian Gas Export Co. (NIGEC), has been cited by the media in April as saying that the company in cooperate with Golar was pursuing a FLNG project to support Iran’s LNG exports to Europe and Far East markets.
According to Kameli, Golar would provide a FLNG vessel for the project to be located at one of the Iran’s ports in the Persian Gulf by March 2017.
Initial plans for using Golar Hilli FLNG vessel for the Perenco-proposed project in Cameroon and Golar Gimi FLNG vessel for the Fortuna-proposed project in Equatorial Guinea are in limbo as the projects’ promoters see that they couldn’t gain money in the current market of low prices and fraught with LNG supply.
It was also reported in May that Hemla Vantage is eyeing a $600 million joint venture deal with Iranian Kharg Petrochemical Co. (KPC) to produce and export LNG from the country’s Kharg Island using Exmar-operated FLNG vessel which was originally dedicated for the annulled Caribbean FLNG project in Colombia.
“Hemla will secure debt financing and will be 50/50 equity partners with KPC,” Hemla Vantage had said, adding that the joint venture will purchase 200 MMCF/D of flared gas from offshore fields near Kharg Island over a period of up to 15 years as in its first phase, the site is projected to produce 0.5 MMT/Y of LNG.
However, Iran’s FLNG ambitions have not progressed since they revealed by the country’s officials as “they hit a tall wall, the US sanction on technology transfer to Iran,” Mosi Nabi Senior Consultant at Global LNG Info said.
“Golar and Exmar FLNG facilities’ liquefaction technology-equipments and turbines are supplied by Black & Veatch and GE, respectively, which both are American companies and using these facilities in Iran has been restricted by the US department of treasury’s sanction on Iran,” Nabi added.
“Golar initially was very keen to work with Iran for utilizing its FLNG vessel(s) in the country under some different arrangements i.e. tolling and joint venture but they suddenly stopped their efforts,” an Iranian informed source told Global LNG Info, adding that “there were also some reservations about using these technology in Iran, world’s largest gas reserves holder, where the land-based LNG export projects would be more reasonable, though in a suitable market situation.”

"Exmar FLNG Facility"