Regional LNG: Iran?s LNG fails to sell in South Korea

Due to the lower prices offered by other rivals, the National Iranian Oil Company (NIOC) failed in its bid to annually sell 2.5 million tons of the Liquefied Natural Gas (LNG) to South Korea, said an informed source in the Oil Ministry, Iranian Students News Agency (ISNA) reported Monday.

According to a survey conducted to assess the LNG markets in Asia, Japan, South Korea and Taiwan, these are the major importers of the commodity in Asia; however, Iran?s long distance from the Southeast Asian markets is providing something of a boon to the countries such as Indonesia and Malaysia. Because, transportation costs for the gas delivery from these countries are of the half compared to the transportation cost from Iran to the destinations in the South East Asia, the report said.

However, due to the surplus demands in the LNG markets, during the period from 2004 to 2007, Iran has a limited opportunity to enter the markets, the report also noted, adding that India?s and China?s increasing demand for Iran?s LNG has offered a good opportunity for Iran to enter the markets.

Moreover, in an effort to overtake the LNG sales from its arch-rivals like Qatar, Iran offers its Asian customers package LNG deals which include awarding contracts on development of its oil fields. (*)