India resumes LNG import talks with Iran

Source: PIB, Government of India

Resumption of Negotiations with Iran for Import of LNG  The Minister of State (Independent Charges) for Petroleum & Natural Gas Dharmendra Pradhan informed the Rajya Sabha in a written reply on Wednesday that Indian buyers (GAIL, IOCL & BPCL) signed bilateral Sale and Purchase Agreement (SPA) with National Iranian Gas Export Company (NIGEC), Iran on June 13, 2005 for import of 5 MMTPA of LNG. Quantities required by the buyers were as follows: GAIL – 2 MMTPA IOCL – 1.75 MMTPA BCPL – 1.25 MMTPA The contract price for Liquefied Natural Gas (LNG) was linked to Brent crude with a floor and cap of $10/bbl and $31/bbl respectively. According to the side letter signed along with the contract, NIGEC was required to obtain approval of National Iranian Oil Company (NIOC) for the LNG SPA within 15 days. However, NIGEC neither secured this approval nor implemented the LNG SPA. With the lifting of sanctions, Iran is again planning LNG liquefaction facilities. An Indian delegation visited Iran during last week of July, 2015, wherein Indian side indicated their willingness to off take LNG from Iran.  

August 12, 2015 | 4:32pm IST.