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India signs pact with Iran for LNG supply

Saturday, 08 Jan 2005
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India signed a pact on 7 January 2005 to import 7.5 million tonnes of LNG from Iran for a 25-year period beginning 2009.

The agreement was signed between Gail (India) and IOC, from the Indian side, and National Iranian Gas Export Corporation. Gail, IOC, ONGC and OIL will market the LNG in the ratio 40:25:25:10.

Iran would export LNG from the Phase 12 of the gigantic South Pars gas field. The field is expected to produce 15 million tpa of LNG out of which 10 million tpa has already been contracted.

Indian companies will also have the right to subscribe to equity stake in the LNG liquefaction plant that would be set up in Iran. The country has offered a 4 per cent stake for every 1 million tpa of LNG contracted for purchase. Thus, Indian companies could have a maximum equity stake of 30 per cent in the liquefaction plant.

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