TEHRAN – The construction of Iran’s first mini liquefied natural gas (LNG) plant has commenced on Kish Island, with investments from Iranian companies and equipment supplied by domestic knowledge-based firms.

As Tasnim News Agency reported, the groundbreaking ceremony for the project took place nearly a year after a trilateral memorandum of understanding was signed between the Kish Free Zone Organization, the Vice Presidency for Science and Technology, and an Iranian knowledge-based company.

Ruhollah Moghadasi, the head of the investing company, stated that the Kish Mini LNG project is a domestically developed initiative aimed at expanding Iran’s natural gas liquefaction sector.

He noted that his company is currently implementing four LNG projects with a total capacity of 180,000 tons per year, involving an €80 million investment. The Kish Mini LNG plant is part of this larger effort.

Moghadasi emphasized that these projects focus on the localization of advanced LNG technologies, utilizing domestic knowledge-based companies to develop ultra-cold liquefaction systems.

He added that the initiative aims to export captured flare gas in LNG form, generate foreign exchange revenues, meet domestic industrial demands, and supply off-grid consumers with LNG, particularly during colder months.

“Our goal is to establish LNG as a strategic fuel in Iran, similar to its widespread use worldwide for over 70 years,” he said.

Regarding the Kish Mini LNG project, Moghadasi explained that the plant will liquefy natural gas sourced from flare gas collection operations under a swap agreement with the National Iranian Gas Company (NIGC). The produced LNG will provide clean and stable fuel to hotels and hospitality businesses on Kish Island, as authorities have decided against constructing an extensive natural gas distribution network to protect the island’s environment.

Another key application of LNG will be its use as a clean fuel for transportation.

Moghadasi expressed hope that in the next phase, LNG supply for heavy and semi-heavy transport fleets on the island would be implemented.

He also highlighted the potential of LNG for fueling ships, a long-established practice globally. “According to national policies and international conventions, Iran must transit to LNG for maritime transport in the near future,” he said.

To this end, Moghadasi stated that his company is working closely with the Supreme Council of Maritime Industries and aims to introduce LNG-fueled passenger ferries operating between Kish Island and neighboring countries, which would both expand LNG usage and contribute to the island’s tourism industry.

He noted that the engineering and procurement phases were completed before the land was fully prepared, allowing the project to begin with a 20 percent progress rate. The plant is expected to be operational next year.

EF/MA