NITC eyes LNG deals

A first step towards becoming a major force in the LNG trade could be taken by the National Iranian Tanker Company (NITC) this year.

NITC is already involved in a major expansion of its tanker fleet.

The first orders for LNG carriers need to be placed before the end of 2006 NITC director, Shseyedan Seyedhabibollah, told the Reuters news agency.

Iran has major gas reserves and big ambitions to be a leading exporter that Seyedhabibollah indicated would require a fleet of at least 30 LNG carriers.

But large scale ordering of LNG carriers by Iran is seen to be some way off by many industry observers, especially if NITC hopes to involve its domestic shipbuilding industry in the project.

NITC is however quote prepared to order overseas and has 17 tankers, of which all but four are 300,000-dwt or larger contracted from Hyundai, Samsung and Daewoo for delivery in 2008 or 2009. The remaining vessels are suezmax sized vessels on order from Hyundai Samho.

Seyedhabibollah indicated that Iran’s first LNG export terminal would come on stream in 2009 so this is when the LNG carrier deliveries would need to begin.

Large LNG carriers currently cost well over $200m and maybe nearer to $300m if they have regasification capabilities, so NITC is talking about expenditure in the $7bn to $8.5bn range for 30 vessels.

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