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Iran liquid natural gas projects "expected to delay further"

Apr 16, 2007, 13:11 GMT

Nicosia - The schedules for Irans two most advanced liquid natural gas projects - Pars LNG in partnership with Total and Petronas, and Persian LNG in partnership with Shell and Repsol - are expected to slip further, the Middle East Economic Survey reported Monday. The Cyprus-based weekly publication said that Total had announced that sharply rising cost estimates and geopolitical concerns could delay Pars LNG, while Shell and Repsol remain at least 12 months away from a final investment decision. The MEES report added that the first possible start-up date for Persian LNG might have slipped by a year. The Total-led Pars LNG project was until recently scheduled to start up in 2011, while Shell had expected Persian LNG exports would begin in 2011-2012. Although Iran has repeatedly announced lately that Total and Petronas were near to reaching the final investment decision for Pars LNG, the latest slippages cast further doubt over the country's ambitious multi-project LNG programme, which was already under pressure from lack of outside financing because of US sanctions. Total has signed a framework agreement with NIOC for a linked development of Phase II of the South Pars gas field with the ten million-tons-a-year capacity Pars LNG project. The cost of the combined project had not been announced, but the partners were working towards a 2011 start up, having signed two sales agreements for a total six million tons a year of LNG. Total's project is further advanced than Shells, the MEES report said. Total has completed front-end engineering design (FEED) for Pars LNG and has been undertaking a feasibility study, including project economics, in preparation for the final investment decision. This announcement would be viewed as a critical point, committing the project partners to beginning construction work in the near future. Soundings indicate that the partners may now be looking at 2012- 2013 as the earliest possible start-up date for Persian LNG, while Shell is understood to be viewing the project in a positive light, despite the [potential for further increases in likely project costs. © 2007 dpa - Deutsche Presse-Agentur

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John DonovanApr 16th, 2007 - 16:02:37

As a Shell shareholder I find it absolutely appalling that Royal Dutch Shell is still pressing on with its plans in Iran despite: -

*Sanctions threats against Shell by the American government

*Iran’s avowed intent to become a nuclear power

*Iranian threats to eliminate Israel

*Iranian capture, exploitation and release for propaganda purposes of British sailors/hostages

*Iranian supply of roadside bombs to blow up American and British soldiers in Iraq

Shame on Shell

Posted by John Donovan, co-owner of the website www.royaldutchshellplc.com

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