Monday, September 24, 2007

New sanctions may bust Iran LNG

United Press International: Analysis: New sanctions may bust Iran LNG
By DEREK SANDSUPI Energy CorrespondentWASHINGTON, Sept. 24 (UPI) -- Potential European and U.N. sanctions, and an Iranian energy policy unfavorable to foreign investment, may spell disaster as Tehran struggles to develop its liquefied natural gas potential in the massive South Pars fields.With the major powers considering a third set of U.N. sanctions against Iran over worries it is using a civilian nuclear program to cover up attempts to develop nuclear weapons, France’s recent turn to harsher rhetoric toward Tehran may signal a tipping point in Iran’s oil and gas exploration and modernization.

Last Thursday, French President Nicolas Sarkozy called for stronger sanctions against Iran, but also further softened comments by his foreign minister earlier in the week by saying France does not want war with Iran. Last Sunday, Foreign Minister Bernard Kouchner said war with Iran would be the worst outcome, but they should be prepared for it. Iran denies it is pursuing nuclear weapons.Kouchner also said Thursday the European Union should impose its own sanctions, pressuring energy companies to stop investing in Iran.

France’s energy giant Total has long been invested in Iran’s massive South Pars natural gas field, which is estimated to contain between 280 trillion cubic feet and 500 tcf of gas. In 2006, Total took out about 2 billion cubic feet of natural gas a day from two sections of the South Pars field it has developed since 2004.Total has also been seeking to develop another section, Block 11, of the South Pars field in order to feed a liquid natural gas processing plant it hopes to build in Iran, which would eventually process 15 million tons a year of natural gas.... Read More Here

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