NIOC National Iranian Oil : Public Announcement

2017-01-04T23:23:51+03:30

Public Announcement

For identification of qualified applicants to purchase natural gas in order to utilize in small-scale liquefaction units (SLNGU) or compressed natural gas units (SCNGU) with the aim of exporting

In the year of 'Resistance Economy; Action and Implementation' and with the aim of performing Iran's Supreme Leader's instructions about resistance economy policies, in line with article 44 of Islamic Republic of Iran's (IRAN) Constitution and in order to encourage investment in the construction of SLNGU or SCNGU on the southern coasts of IRAN, National Iranian Oil Company (NIOC) on behalf of the Ministry of Petroleum of IRAN (MOP) intends to identify capable and qualified applicants to purchase natural gas for utilizing in such units with a capacity of utmost 1.5 million tons per year (MMTPA) and export the products (LNG or CNG), in accordance with the following terms and conditions:

1- The price of delivered natural gas shall be determined and calculated according to the IRAN`s Minister of Petroleum's resolution No. 20/2-268015 dated 3th Sep 2016 (Appendix 1). In addition to the price, all other terms and conditions and terms set in the mentioned resolution shall be included in the contracts to be signed with qualified applicants.

2- Qualified applicants decide about the capacity of SLNGU or SCNGU within the maximum 1.5 MMTPA. Qualified applicants shall be responsible for the finance, construction and operation of SLNGUs or SCNGUs as well as the construction costs of any required pipelines for natural gas delivery to these unites and all other related costs and expenses.

3- The exact location for construction of the SLNGU or SCNGU implementation shall be confirmed by NIOC. It is understood that NIOC is fully authorized for confirmation of such locations based on its own discretion and policies.
Note 1: NIOC will do its reasonable efforts for any required cooperation regarding allocating appropriate lands to qualified applicants for construction of SLNGU or SCNGU in the neighborhood of Iran LNG site located in Pars Special Economic Energy Zone.
Note 2: In case applicants request to construct the SLNGU or SCNGU in any location other than the land defined in note (1) of this clause, they can offer NIOC their proposal for its review and approval.

4- Qualified applicants shall be responsible for land preparation, providing required infrastructures as well as obtaining necessary authorizations and permits for construction and operation of SLNGUs or SCNGUs. During project execution including design, construction and operation activities, the qualified applicants shall observe technical, safety and environmental regulations and standards of MOP.

5- Qualified applicants are subject to the MOP's regulation.

6- Term and duration of Gas Sales and Purchase Agreement (GSPA) signed before 20nd Mar 2018, shall be maximum 20 years and may be extendable subject to mutual agreement between NIOC and the buyer.

7- In the event that requests by qualified applicants for natural gas purchase, is less than the capacity which NIOC is able to supply based on MOP`s supply-demand approved plans, NIOC will sign the contract with qualified applicants through negotiation procedure. Otherwise, in line with competition principle and for the purpose of maximizing national interests earned from selling natural gas, appropriate competition process, terms and conditions of which will be announced later, shall be hold. Also, signing GSPA with qualified applicants shall be subject to issuance of the relevant license by MOP.

8- The applicants shall have experience in the field of industrial production as well as technical, management and financial capabilities, for construction and operation of SLNGU or SCNU adequate to their requested natural gas volume. Evaluation and identification of qualified and capable applicants for signing any GSPA will be based on the 'Instructions for identification of qualified applicants to purchase natural gas in order to utilize in SLNGU or SCNGU' (Appendix No. 2)