Monday, October 18, 2004

Iran, Kuwait resume gas exports negotiations

IranMania News: "Iran, Kuwait resume gas exports negotiations

Monday, October 18, 2004 - ©2004 IranMania.com
LONDON, Oct 18 (IranMania) - An Iranian delegation arrived in Kuwait city Sunday to resume negotiations on gas exports to the Persian Gulf country.

A member of the delegation told IRNA that this round of discussions aims to finalize an agreement and will focus on the quality amount and price of gas exports from Iran to Kuwait.

Several Kuwaiti media quoted its oil officials last week as saying that negotiations have been moving slowly on the issue, "but given the importance of signing of an agreement the Kuwait is satisfied with the discussions."

The official said that Kuwait has informed Iran it is not satisfied with quality and proposed price of gas and wants to negotiate a better rate. Kuwait has said that upon ratification of an agreement with Iran technical work for laying the pipeline will start immediately.

The initial estimates are that the pipeline expenses will hover around $200 mln. Kuwait has no gas reserves and in addition to Iran is negotiating with Iraq and Qatar for imports of gas.

An official said in August that although Iran has embarked on extensive development of its gas fields, "it has only 5% of world gas production." Speaking at a first session of BOAO Energy Forum Managing Director of Iran National Gas Company (INGC) Rokneddin Javadi said that Iran`s share in the world`s gas export market is meager. "Iran has plans to increase its share to over 10% of the international exports by 2020," he added.

To achieve this aim INGC has four Liquid National Gas (LNG) projects deigned and is reviewing several other project for exports of gas to Persian Gulf Littoral states, Caucuses, Europe, Pakistan and India, Javadi underlined. "Iran has 27,000 bln cubic meters of gas reserves and approximately 18% the total of proven gas reserves in the world."

The country produces 313 mln cubic meters of gas daily which is slated to increase to 580 mln cubic meters by the end of the fourth five-year development plan (March 2005-2010).

Also, the plans call for the capacity of the first unit of South Pars phase 1 refinery to reach 500 mln cubic meters in the near future."

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