TEHRAN, June 18 (Xinhua) -- South Korea will build small-scale liquefied natural gas (Mini-LNG) plants in Iran to meet energy needs in remote areas of the country, Press TV reported on Sunday.
An agreement was signed in South Korea's Busan last week and the construction of the plant could begin within the next four years, it said.
A consortium from Iran and South Korea will be involved in the scheme, said Saeed Pakseresht, director for research and development affairs of the National Iranian Gas Company (NIGC).
"We do not have the technology to develop Mini-LNG plants, but joining hands with companies like South Korea's Oceanus and KOGAS is an important step to develop our LNG sector," Pakseresht said.
The plan to build the plants envisages a production capacity of 15 tonnes per day, he said, adding that it could rise to as high as 300 tonnes per day at a later stage.
The South Korean companies involved in the project are Oceanus, Kitech Institute of Industrial Technology and Korea Gas Technology Company, according to the report
The Iranian parties involved are the NIGC, the LNG Institute of Tehran University and the Research Institute of Petroleum Industry.
It was announced here on June 15 that Iran's Finance Minister Ali Tayyebniya will visit Seoul soon to finalize talks over credit line of 13 billion U.S. dollars from South Korea for Iran's several energy projects.
The Korea Eximbank would provide 8 billion dollars in loan, and the remaining 5 billion dollars would be provided by Korea Trade Insurance Corporation.
The loans would be used for the projects already approved by Tehran and Seoul, including the renovation of Isfahan Refinery and the construction of Siraf condensate refineries.
A certain portion would also be allocated for ethane production in the Phase 12 of South Pars gas field.