Iran signed a contract for the conversion of natural gas into liquefied natural gas (LNG) for export, the state-run Shana news agency reports.
Under the terms of the contract, Iran will supply natural gas to a floating liquefied natural gas (FLNG) unit belonging to the Belgium firm, Exmar. The unit has the capacity to produce 500,000 tons of LNG per year. Iran is to provide 2.3 million cubic meters of natural gas to the vessel per day, Azer News reports.
The contract is between the National Iranian Oil Company (NIOC) and IFLNG (a joint venture between Norway’s Helma and Iran’s Khark Gas Refining Company). It is to go into effect in three months, according to Shana.
In 2015, Iran’s net natural gas exports totaled 0.9 billion cubic meters. The country’s domestic natural gas market is considered the fourth largest in the world—following only the US, Russia, and China—and consumes approximately 90% of the Iran’s natural gas production, according to Bloomberg.