Iranian companies and a French firm have reached an agreement to build the first floating LNG production unit at the offshore Forouzan oilfield, first in the region, with a capacity of 1mt/year, Press TV cited Iran’s Deputy Petroleum Minister, Roknoddin Javadi as saying.

“Final negotiations have been held between two Iranian companies and a reputable French company in order to set up an FLNG unit,” he added.

Foreign investments are weighing between $800m to $1b in Iran’s FLNG project designed to convert 200mcf/d of associated gas to LNG, the National Iranian Oil Company (NIOC) announced.

According to Mehr News Agency, Iran’s Oil Minister, Bijan Zanganeh said that LNG production was a part of Iran’s big post-sanction plan, targeting Europe for natural gas exports.