By the late 2000s, however, the international partners in the first two ventures were forced to abandon the projects given the intensification of nuclear sanctions against Iran.What remained was the third project, Iran LNG, and the frustration in Tehran that massive investments in the LNG sector hadgone to waste.In fact, in light of the withdrawal of international companies and potential technology providers, Iran excluded any role for LNG in its subsequentgas sector strategy.
Developments in a number of fields have since compelled Iranianpetroleum sectorstrategists to reconsider and take a more serious look at LNG. The factors contributingto the shift in strategy include the following:
- Growth in gas production: Irans actualgas productionand potential for exports have increased substantially, allowing the country to plan for major export activity.
- Availability of Western technology: The lifting of nuclear sanctions has made it feasible for Tehran to againsecure the needed technologies and equipment to construct LNG complexes.
- Demand outlook for LNG: The growth projection for LNG is such that global demand will grow by 50% in 2020 compared with demand in2014.
- Changing geostrategic realities:Qatar is Irans most significant competitor in the global LNG market, and an improvement in relations between themin the aftermath of the Saudi-led blockade against Qatar has paved the way for a more pro-active LNG strategy in Iran.
- Commitment to stop the flaring of gas: Tehran envisions a totalban on flaring gasin the South Pars gas fields by 2020,a process that can be facilitated through converting some of the freed gas to LNG through so-called floating LNG (FLNG) capacity.
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