RIYADH: Iran is planning to restore schemes to enter the liquefied natural gas, or LNG, market and propel exports, Bloomberg reported.
This comes as Europe is trying to reduce dependency on Russia and could therefore potentially end sanctions on the Middle Eastern country.
Accordingly, government-owned natural oil and gas producer National Iranian Oil Co. has invited investors to submit proposals for building small LNG units.
The size, timeline, or location of the potential LNG units are yet to be disclosed.
Europe’s benchmark gas futures hit a record 345 euros a megawatt hour last week. The continent is on the search for alternative gas sources.
Iran has the second biggest gas reserves globally; however, entering the LNG market could be somewhat difficult as the country will need multi-billion-dollar facilities that can turn gas into a liquified form for shipment worldwide.
Eight previous Iranian LNG export schemes were hindered due to sanctions or capital constraints.
The sanctions on the Islamic Republic are set to ease if the 2015 nuclear deal is restored.