TEHRAN Feb 7 South Korea's Daelim Industrial
Corp. (000210.KS) signed a deal on Wednesday worth about $320
million to build storage tanks for a liquefied natural gas (LNG)
plant in Iran, state media and a source close to the deal said.
The LNG project, which is owned by the state's National
Iranian Oil Company (NIOC), is being built near Assalouyeh in
southern Iran, and will be supplied with gas from phase 12 of
Iran's South Pars field.
Iran has the world's second largest gas reserves but has
been slow to develop exports partly, analysts say, because the
most common form of technology to cool the gas into liquid form
comes from the United States, which imposes sanctions on Iran.
The source, who asked not to be identified, said Daelim
would carry out the work with a subsidiary of Khatam al-Anbia,
the engineering arm of Iran's Revolutionary Guards.
He said the contract to build storage tanks for LNG and
liquefied petroleum gas (LPG) was worth about $320 million,
although some state media reports said it was worth more.
He said work would take 42 months.
Ali Kheirandish, the managing director of Iran LNG company
which is in charge of the LNG project, was quoted by the
official IRNA news agency as saying the plant would produce 10.5
million tonnes a year of LNG when finished in 2010.
The company is sometimes referred to as NIOC LNG.
Analysts say Iran is still at least 10 more years away from
becoming a major gas exporter.