Iran gas firm, bank sign $4bn refinery deal
Tehran, January 25, 2011
Iran's national gas company and one of its state banks signed a contract worth $4 billion to provide the funding for construction of refineries, state television reported.
The deal was signed by Iran's Saderat Bank and the National Iranian Gas Company (NIGC) for the construction of Bidboland gas refinery and a unit at the Parsian refinery to produce ethanol, according to the report.
State television said Saderat, one of Iran's five major state-owned banks, will have an 80 percent share in the two projects and that NIGC will hold the rest.
'A new relation has been established between domestic banks as investors and energy projects, which will lead to the increase of efficiency in the economy,' television quoted Oil Minister Massoud Mirkazemi as saying.
The Islamic Republic says it needs around $25 billion a year in investment to meet its target development goal in oil and gas sectors. But western firms have become increasingly wary of investing in the country due to international sanctions amid the long-running nuclear dispute.
'Western countries started imposing sanctions on Iran with the aim of deterring investment ... but signing such deals (with local investors) shows that developing our energy sector will speed up,' Mirkazemi said, according to television.
'With the replacement of foreign firms with local companies, we have had good progress in our projects,' he added.
Iran also says it is still drawing interest from Indian, Chinese and other Asian firms seen as less susceptible to international pressures.
Western countries fear Iran's nuclear programme could lead to weapons production. Tehran denies the charge, saying its nuclear program is peaceful and is aimed at generating electricity.
Iran boasts the world's second-largest natural gas reserves after Russia, but US and UN sanctions have slowed its development as a major exporter.
Iran exports gas to Turkey and Armenia and plans to export to Pakistan and the United Arab Emirates, among others. – Reuters
More Energy, Oil & Gas Stories
- ME oil, gas transaction value up 15pc
- Victrex to showcase new product in Paris
- Aramco JV puts off giant refinery overhaul to 2015
- Libya threatens to bomb N Korean tanker
- Bahrain 'producing 850MW of surplus power'
- 2,000 experts for Bahrain geosciences summit
- Libyan rebels start oil exports, bypassing govt
- Dubai drilling company set for London IPO
- Opec output soars on higher Iraq exports
- S Korea to pay Iran $550m under nuke deal
- Qatar LPG exports will stay unchanged till 2018
- $14bn Bahrain energy sector focus for summit
- Iraq now world's fastest-growing oil exporter
- Old IT systems pose risk to oil firms
- Thomson Reuters adds commodity monitoring tool
- Oil below $90 to hit GCC economies
- GlassPoint appoints new Oman director
- Sheffield company opens Dubai hub
- Oman targets big rise in gas output
- Intertek buys UAE firm for $66m
- Qaiwan to tender Baizan refinery EPC contract
- Al Maha wins Oman Air fuel supply deal
- Iran to become top gas importer by 2025
- UAE hydrocarbon projects seen hitting $11bn
- Summit focus on occupational safety
- Aramco names new senior VP
- Siemens gets $253m Qatar power contract
- Taqa-led group's India deal worth $1.6bn
- Taqa-led group to buy India power plants
- Iraq oil exports hit record 2.8m bpd