Feasibility Study of Liquefied Natural Gas Project for the South-Pars Gas Field of Iran

In this paper we have analyzed the economic feasibilities of producing liquefied natural gas (LNG) using “South-Pars” gas field of Iran based on the most recently built facilities around the world. Iran has the world’s second largest reserves of natural gas and can satisfy a significant portion of the anticipated demand of LNG in the next years. The results show that this project is commercially viable based upon the fiscal assumptions evaluated. In order to investigate the most important factors affecting the project, we have used the sensitivity analysis. Based on the results, the price of LNG, fixed investment cost and feed gas price have substantial effects on the project and its IRR.