The National Iranian Gas Export Co., or NIGEC, has signed a contract with a foreign company to export gas to the United Arab Emirates for 25 years, Iranian media said Monday. Iran's official Press TV quoted NIGEC's Reza Kasaeizadeh as saying the unnamed foreign company is to develop an Iranian gas field in the Persian Gulf. It will export an annual 3 billion cubic meters of gas a year to the UAE for 25 years. NIGEC said a month ago it had signed a memorandum of understanding with the unnamed company but the announcement of a contract suggests the deal may have moved closer to reality. The deal comes as UAE-based Crescent Petroleum said it would take Iran's state oil company to arbitration over a gas supply deal after Iran refused to deliver the gas following a pricing dispute. Separately, the Oil Ministry's news agency Shana quoted the head of the Liquid Gas Production Co., Ali Kheirandish, as saying liquefied natural gas capacity will reach 45 million metric tons a year by 2016 if the Persian and Pars LNG projects are completed. He also said if negotiations related to the two projects aren't successful with the foreign partners, the work may go ahead with domestic companies. The semiofficial Mehr news agency also said Monday that the 19,000 tons a day Zarand tar refinery will come on stream by Sept. 23 in southeastern Iran. The announcements come as Iran seeks to develop its oil and gas production capacity, despite the threats of new sanctions over its nuclear program.
