The Hindu Business Line : GAIL team to visit Iran next week for additional LNG

A DELEGATION from GAIL (India) Ltd is scheduled to visit Iran next week to discuss the issue of sourcing additional 2.5 million tonnes of liquefied natural gas (LNG) over and above the 5 mt LNG already agreed upon between the two countries, the Petroleum Minister, Mr Mani Shankar Aiyar, said today.

Mr Aiyar confirmed that `everything was on board' as regards the 5-million-tonne-a-year LNG deal with Iran.

Asked about the reasons for delay in the ratification of the deal by the new Iranian regime, Mr Aiyar said there has been a change in Government in Iran and in the absence of a Petroleum Minister the high-powered council could not be constituted there.

"We were well aware of these implications when the Indian delegation went to Iran to negotiate the LNG deal in midst of an election," he stated.

The Iranian Deputy Minister for International Affairs in the Ministry of Petroleum, Mr M.H. Nejad Hosseinian, during his recent visit to India, had assured that the project was on track, Mr Aiyar said.

The Iranian Minister, who was here for the third India-Iran Special Joint Working Group meeting late last month on the multi-billion Iran-Pakistan-India gas pipeline project, had said that he hoped to get the ratification by Iran's High Economic Council soon.

Earlier, while inaugurating GAIL's National Gas Management Centre, Mr Aiyar said that GAIL should be allowed to set up pipelines across the country without firming up supplies and demand for gas. He said that GAIL would gain by the entry of private operators in the pipeline business. GAIL would continue to be a dominant player and undertake corporate social responsibility along with profit making, he added.

Speaking to newspersons, the GAIL Chairman and Managing Director, Mr Proshanto Banerjee, said the company would be signing three memorandum of understanding with leading Chinese oil and gas companies during the Petroleum Minister's visit to Beijing next week.

A memorandum each will be signed with CNOOC, Sinopec and Beijing Gas with the view expand co-operation in the oil and gas sector, gas exploration, transportation and city gas.