LG Construction Wins Two Phases of South Pars Gas Project

LG Construction is set to sign a deal this weekend with NIOC to develop phases 9 and 10 of the South Pars gas field. An LG spokeswoman said the deal to build pipelines and other facilities with an Iranian partner could be worth $1.6 billion. The deal might be struck on direct financing terms rather than on Iran's buy-back model, which allows foreign firms to recoup investment and make profit by receiving part of the project's output, she added. The exact terms of the deal were not disclosed.

The offshore South Pars gas field, which shares a border with Qatar's North field, will produce natural gas, liquefied petroleum gas (LPG) and gas condensate. The South Pars field holds more than 13 trillion cubic meters of gas.