India-Iran to rework LNG import deal

India and Iran on Friday moved closer to reviving the stuck LNG import deal, with both sides agreeing to renegotiate the agreement. Tehran is offering a new price with New Delhi saying that it would too raise its offer slightly for importing 5 million tonnes (mt) of LNG from 2009.

The two countries also agreed to hold further bilateral and trilateral negotiations for reaching an agreement on the proposed Iran-Pakistan-India gas pipeline after the final report of the consultant studying the feasibility of the project is released. ?They have given us a new offer (on pricing) and we will start working on that and take a decision,? petroleum minister Murli Deora said after a meeting with Iran foreign minister Manouchehr Mottaki.

?A little higher price is okay but the new price should not be much higher than what we had offered. With the new formula, I am very hopeful that the deal would fructify,? Mr Deora said. The Indo-Iran LNG import deal entered more than two years back got stuck after New Delhi rejected Tehran?s demand for $5.10 per mbtu for LNG as against the originally agreed price of $2.90 per mbtu. The deal involves supply of 5 mt of LNG annually by Iran for 25 years with supplies beginning in 2009.

The visiting Iranian minister said India and Iran complement each other as India wants gas for its developmental plans and Iran wants to earn revenues from gas exports. ?I am optimistic that after further negotiations with a specific formula, you will receive gas soon,? he said. Mr Deora said the next bilateral talk on the LNG deal between the two countries would be held soon. He also indicated that India might ask for raising the volume of LNG to be imported.

Source: The Economic Times, New Delhi
                          Petronet LNG Stock Quotes                                       
©Petronet LNG Limited                                                            Home | Contact Us | Disclaimer | Quick Links | Mail Servers: Primary / Secondary |