The Hindu Business Line : LNG deal: Deora may meet Iranian President

New Delhi April 25 The Petroleum Minister, Mr Murli Deora, is to meet the Iranian President, Mr Mahmoud Ahmadinejed, on Thursday, to pursue commitments made by Iran, which include supply of five million tonne liquefied natural gas (LNG) annually for 25 years beginning end of 2009.

Mr Deora is making an unscheduled stopover in Tehran on his way back from the seven-day tour of three oil rich countries - Syria, Algeria, and Egypt. Besides, the LNG deal, fructifying the petrochemical complex project and grant of oil fields to ONGC Videsh Ltd (OVL) are also expected to be discussed at the meeting.

India has been pushing Iran to honour the June 2005 LNG deal, which is now stuck over the contentious issue of pricing. Iran wanted a higher price than the one agreed in June 2005. Besides, the Supreme Economic Council of Iran is yet to ratify the deal. Tehran wanted to sell the gas at $5.1 per million British thermal unit (mBtu) and not the earlier price of $3.215 per mBtu for LNG. India may offer to pay higher price for additional 2.5 mt LNG that India wants beyond the already contracted volume of 5 mt.

The Petroleum Minister is also likely to discuss the price expected by Iran for exporting gas through the proposed Iran-Pakistan-India pipeline. Iran is seeking $4.93 per mBtu price for gas exports through the pipeline.

Also, indications are that Mr Deora would seek the Iranian President's intervention to get OVL development rights for the Jufery oilfield and a 10 per cent stake in Yadavaran field that was promised as part of the June 2005 deal.

Mr Deora is expected to hold preliminary discussions with his counterpart in Iran. Discussions on Indian Oil Corporation's interest in developing a part of the giant South Pars gas field and putting up a plant to liquefy natural gas from the field and then ship it as LNG may also take place at the meeting. Progress of GAIL (India) Ltd's memorandum of understanding with National Petrochemical Company of Iran for setting up a one million tonne gas cracker project jointly may also be followed up while IOC's interest in revamp and modernisation of Iranian refineries may also figure during discussions.

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