LG Construction (Korea) is to sign a deal 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 USD 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 metres of gas. LG Construction will head the consortium, which will also include two local Iranian construction companies. There is also the possibility of other South Korean firms becoming involved in the project at a later date. LG Construction along with the two local Iranian firms will be involved in the building of pipelines and other facilities related to the project.
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