General Electric refuses Liquefied Natural Gas (LNG) equipment to Iran - Indian imports of Iranian LNG in jeopardy
Media Correspondent
Oct. 26, 2005

India's US$22 billion deal to import 5 million tonnes of LNG from Iran is in trouble after General Electric of US is believed to have refused supply of crucial equipment needed to make LNG to Tehran.

GE has refused to supply compressors, a crucial link in converting natural gas into liquid for transportation in ships, to Iran, industry sources said.

German firm Linde had also refused liquefication technology to Iran. As such Iran cannot access commercially proven LNG liquefication technologies due to US sanctions on Tehran.

The only two commercially proven LNG liqueficiation technologies are of US origin and the sanctions preclude US based firms to associate with projects in Iran.

Sources said Iran was banking on yet to be commerically tested ''MFC'' process of Linde and ''Liquefin'' process of Axens (a wholly owned subsidiary of IFP of France) for liquefication of natural gas produced from gigantic South Pars fields in the Persian Gulf.

While the French liquefication technology is the only hope for Iran, Tehran is now talking to Ukraine for their sourcing compressors. Ukranian compressors are however not very energy efficient and may push up liquefication cost.

Trouble in sourcing technology may delay the first LNG to India by at least two years to 2012, sources said.

National Iranian Oil Co (NIOC), which owns the South Pars gas field, was to approve the LNG export deal to India within three weeks of signing of the Sales Purchase Agreements (SPAs) between Iran's gas export firm NIGEC and India on June 12 but is yet to give its stamp of approval.

General Electric refuses Liquefied Natural Gas (LNG) equipment to Iran - Indian imports of Iranian LNG in jeopardy
Media Correspondent
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