Iran LNG company takes legal action against EU over ban

Iran LNG Company (ILC) has 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.

“Following the EU’s decision to blacklist this company [in 2012], a number of [legal] advisors and an international legal firm have been employed to present credible documents and evidence [in favor of ILC),” the company said in a statement on Tuesday.

It added that the international court has demanded that the European bloc submit documents justifying the ban on the ILC.

Mehr news agency quoted analysts as predicting that the ILC would soon be delisted as the EU has failed to come up with solid evidence for its decision against the Iranian company.

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

Iran is forecasted to make delivery of 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.

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 sanctions came into force in early summer 2012.

On October 15, 2012, the EU foreign ministers reached an agreement on another round of sanctions against 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.