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China's CNPC In Talks To Develop Iran Gas Field
2006-10-25
Reuters
www.gulfinthemedia.com/ index.php?id=254880& news_type=Economy& lang=en
Top Chinese energy group China National Petroleum Corp is in discussions with National Iranian Oil Company to develop a giant gasfield in the Gulf, industry officials said yesterday.
CNPC, the world's second-largest energy user, facing an increasing domestic gas shortage, is one of the foreign companies looking to develop the Kish natural gas project which held an estimated proven reserve of more than 30 trillion cubic feet.
The discovery, in the island of Kish and announced by Iran early this year, was the biggest find in recent years, according to global upstream consultancy IHS Energy.
"CNPC is now quantifying the size of the field ... It wants to become an operator," an Iranian industry executive said on the sidelines of an industry seminar in Beijing. A CNPC official said the negotiations were at early stage.
Iran has expected the gas project to pump 50 million cubic metres of gas a day when developed.
China is facing a growing natural gas shortage as constraints in infrastructure and regulated, low domestic gas prices curb field development, and as its plans to import liquefied natual gas fall behind schedule.
Iran, holding the world's second-largest natural gas reserve after Russia, has been slow to develop its reserves for export.
