Iran seeks backers for small-scale LNG developments

An Iranian official said Wednesday to expect a call to investors to help back the development of small-scale liquefied natural gas facilities in two months.

Hamid Reza Araqi, managing director of the National Iranian Gas Co., said the government is considering as many as four small-scale LNG facilities for domestic use. Storage facilities associated with the plants could store 3.1 billion cubic feet of natural gas.

"After the launch of the invitation [in October], investment companies can announce their readiness for contribution to the construction of mini-LNG plants," the director said.

Iran said it's producing enough natural gas that imports are on the decline. The director said using LNG in some parts of the country may be easier than building pipelines.

The LNG plants would require at least $100 million in investments. Such investments in Iran may be limited by economic sanctions targeting Iran's energy sector, imposed by Western governments wary of Iran's nuclear ambitions.