India has raised the offer price of five million tonnes
of liquefied natural gas (LNG), to be imported from
Iran for 25 years, by a maximum of 50 per cent. Against
the earlier quoted price of $3.215 per million British
thermal units (MBTU) it will pay $4.775 per MBTU, a
top government official said.
"We are willing to pay up to $4.775 per million
British thermal unit as against earlier capped price
of $3.215 per MBTU," the official said.
had, in June 2005, quoted a price of $2.90 per MBTU
of liquefied natural gas to be imported from Iran through
a pipeline passing through Pakistan. The price would
remain for the initial two years after which it would
be raised to $3.21 dollars per MBTU. Iran rejected the
offer and negotiations dragged on without any solution.
GAIL (India), Indian Oil Corp and Bharat Petroleum had
jointly signed a deal to import five million tonnes
of LNG per annum.
the five million tonnes of LNG to be imported from Iran
every year, GAIL will be responsible for marketing 40
per cent, IOC 35 per cent and BPCL the remaining 25
per cent, the official said.
per the formula agreed last year, Iran was to charge
India 6.5 per cent of Brent crude oil price at the time
of loading of each consignment plus a fixed price of
$1.2 per MBTU. The price, according to this formula,
was to be capped at $3.215 per MBTU at $31 a barrel
are willing to raise the $31 cap to $55," the official
said adding Tehran had sought a higher ceiling of $65
$65, the fob price would come to $5.425 per MBTU.
this $0.30 dollars per MBTU would be added for transporting
the gas in its liquefied form in specialised tankers
from Phase 12 in gigantic South Pars.