, procurement and construction (EPC). They need to change their conditions."
He voiced support for assigning NGL projects to petrochemical companies, saying: "We are ready to cooperate with these companies in the development of fields and we have so far assigned studies on two gas fields."
Kardor said Iran needed no more gas for domestic consumption. "Therefore, the gas produced in the fields must be converted to petrochemical products in the value chain."
1st FLNG Contract
Kardor said Iran was set to sign its first FLNG contract, with a capacity of 500,000 tonnes, with a Norwegian company soon. The contract will be for 20 years and the pricing formula will be set and communicated by the Ministry of Petroleum.
He said that NIOC was in favor of private companies in building water desalination plants and power plants.
"Companies are required to give realistic prices in the tender bids, because NIOC studies the commerciality of projects and will shun projects with insufficient commerciality," he added.
Kardor said NIOC had to cancel a project due to unrealistic price. "We hope that companies would offer realistic prices in order to help the NIOC in its policy of further cooperation with the private sector. If not, we will have to implement these projects through our own direct investment."
He welcomed build-operate-transfer (BOT), build-operate -own (BOO) and public-private partnership (PPP) models for projects.
"Australia and India are among countries that pursued PPP model and they achieved positive results," said Kardor.
Issue of Bonds
Kardor also spoke about methods of financing of projects, saying bonds in Iranian currency were to be issued for the first time on a foreign currency basis. He noted that NIOC would hedge risks of these bonds.
He said that necessary arrangements had been made with the Iran Energy Exchange.
Gas, Best Option to Cut Pollution
Mohammad Hossein Adeli, Secretary General of the Gas Exporting Countries Forum, (GECF), said natural gas market was being influenced by political and technological elements.
"Weather conditions, economic expansion mainly in Asia (China, India), competitive prices and environmental concerns are expected to boost natural gas consumption towards 2018," Adeli said, estimating a 2.1% to 2.3% increase in gas consumption.
He said that world energy demand is projected to grow by 1.1% a year between 2017 and 2040 mainly for a population growth, global economic prosperity due to the emergence of new economies and higher living standards.
"Natural gas will grow by 1.8% per annum and will be the fastest growing fossil fuel in 2040," he said.
"Fossil fuels are expected to meet 75% of the world's energy demand," Adeli said, adding that coal would be replaced increasingly by natural gas, renewables and nuclear power in power generation.
"The share of gas in the overall energy mix will increase from 22% in 2016 to 26% in 2040," he said.
"Cheaper prices of gas compared to renewables, ample global natural gas reserves and gas oversupply" were among factors enumerated by Adeli to support his idea.
He said that power generation will remain the largest natural gas consumer among all sectors, hitting 2,317 bcm in 2040.
"The share of gas in power generation increased from 18% to 23% between 2000 and 2016, and will continue to rise" to reach 28% by 2040, he said, adding: "That represents the largest market share of any fuel."
The share of renewables in the global energy mix was only 8% in 2016 and would reach 20% in 2040.
"Gas has a good competitive position against renewables, and also coal, especially if environmental externalities are integrated," Adeli said.
"Gas market is now very competitive and is passing through a changing and challenging transition," he said.
"There is a momentum for CO2 mitigation, and in spite of the US withdrawal China and EU are leading the world for this cause," added Adeli.
Gas and renewables are two fuels that can effectively address the global concerns on the climate change," he noted.
"Gas provides a global solution for all, while renewables will remain an EU centric solution for long period of time to come. Electrification of vehicles will not be overwhelming; on the contrary, it is again an opportunity for gas to grow as there is a need for more electricity generation," he said in conclusion.