Iran poised to launch initial phase of its first LNG plant

Iran LNG Company (ILC) is set to launch its first liquefied natural gas (LNG) plant in defiance of European Union’s ban on the country’s energy sector.

The first phase of the plant (65-percent complete) includes a 1,100-megawatt power plant, storage facilities for LNG and liquefied petroleum gas (LPG) as well as offshore docks, according to a Friday report by Mehr news agency.

Iran is forecasted to deliver its first consignment of LNG on international markets before March 2014.

The capital investment needed for Iran’s first LNG plant is estimated at USD 5 billion. The facility would start its early production if half that sum is provided.

The plant would be able to produce 10.5 million tons per year of LNG, earning the country more than USD 20 million a day.

On March 26, Iran LNG Company (ILC) filed a lawsuit with an international tribunal against the European Union (EU) for its “unilateral and illogical” ban on Iran’s mainstream producer of liquefied natural gas.

Under pressure from the United States, the EU enforced ban on Iran’s natural gas, gas condensate, and LNG in late 2012.

At the beginning of 2012, the United States and the European Union imposed new sanctions on Iran’s oil and financial sectors with the goal of preventing other countries from purchasing Iranian oil and conducting transactions with the Central Bank of Iran.

The illegal US-engineered sanctions have been imposed based on the unfounded accusation that Iran is pursuing non-civilian objectives in its nuclear energy program.

Iran rejects the allegation, arguing that as a committed signatory to the Non-Proliferation Treaty and a member of the International Atomic Energy Agency, it has the right to use nuclear technology for peaceful purposes.