Russia’s Gazprom and Iranian state-owned NIOC have reportedly signed a cooperation deal which includes LNG projects in Iran.
According to a report by the Iranian oil ministry’s news agency Shana, NIOC and Gazprom signed a memorandum of understanding worth roughly $40 billion during an online ceremony on Tuesday.
Under the deal, Gazprom would help in the development of Kish and North Pars gas fields, pressure enhancement of South Pars field and the development of six oil fields, the report said.
In addition, Gazprom would work with NIOC on the completion of LNG projects, construction of gas export pipelines, and other scientific and technological cooperation, Shana said.
Gazprom confirmed the signing of the memorandum in a statement on Tuesday.
The company said the partners would cooperate on the development of Iranian oil and gas fields, performance of swap transactions with natural gas and petroleum products, implementation of large-scale and small-scale LNG projects, construction of gas trunklines, and sci-tech and technology cooperation.
Iran shares the huge South Pars/North Dome field with Qatar, one of the world’s largest LNG exporters.
However, US sanctions have slowed development of gas and LNG exports in Iran.
Iran LNG, in which NIOC is a shareholder, started building a 10.8 mtpa LNG plant in Tombak back in 2007, but it has not completed the facility. There have been no updates regarding this development for years.
Earlier this year, Shana also reported that state-run National Iranian Tanker Company (NITC) planned to order the country’s first LNG-powered Aframax tanker
NITC is a unit of NIOC and operates a fleet of very large crude carriers, Suezmax, and Aframax tankers.
(Article updated to include a statement by Gazprom.)