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India
and Iran likely to sign $ 25 bn LNG deal
Teheran:
India is likely to sign a $25 billion deal with Iran for
import of liquefied natural gas (LNG) from 2009-10 for
at-least 5 million tonnes per annum of LNG.
A
consortium of Indian firms and the National Iranian Gas
Export Company will sign the deal.
Khazar
Exploration & Production Company (KEPCO), a subsidiary
of National Iranian Oil Company, is open to the idea of
collaborating with ONGC Videsh for deep-sea offshore activities
in the Caspian region.
The
Iranian government has 20 per cent share of the Caspian
waters.
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Iran
may extend Iran-Indo-Pak gas pipeline to China
New Delhi: Iran has agreed to explore possibilities
of extending the 2600-km Iran-Pakistan-India pipeline
to China.
"Iran
has given the green signal on our embarking on serious
dialogue with Chinese authorities on whether this pipeline
could be extended to China," informed Petroleum Minister
Mani Shankar Aiyar.
Aiyar is heading
the Indian delegation at the ministerial level talks with
Iran on natural gas imports.
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Iran
may award gas block to IOC-Petroparas
consortium
Tehran: According to reports emanating from the Iranian
capital, Teheran, Iran is likely to award a gas block
in the South Pars field to the Indian Oil Corporation-Petroparas
consortium, with the official announcement confirming
the award likely to be made nay day now.
IOC
has teamed up with Petropars of Iran for bringing to production
one of the 28 phases planned to develop the 500 sq mile
South Pars field, and produce nine million tones per annum
of Liqufied Natural Gas (LNG) to export to India and other
countries.
While the upstream facilities, for production of 2 billion
standard cubic feet per day of gas (9 million tonnes per
annum of LNG), will be developed by the consortium with
Petropars as operator, the liquefaction facilities will
have the IOC as operator.
In
the upstream gas production, Petropars will have 60 per
cent participating interest with balance 40 per cent being
held by IOC and in the liquefaction facilities IOC will
have a 60 per cent equity stake with balance being held
by Petropars.
According
to reports, exploration and production for nine million
tones per annum of gas would entail an investment of $2.2
billion (Rs4000 crore IOC's share) while LNG liquefaction
would need another $1.8 billion (Rs1500 crore IOC's share).
LNG
shipping would need another $0.8 billion and the LNG receipt
and re-gassification terminal at Ennore would cost $0.6
billion. Transportation pipelines for re-gassified-LLG
would entail another $0.3 billion investment.
According
to Iranian officials, on account of US sanctions on Iran,
which preclude US based companies to associate with projects
in Iran, the only two commercially proven LNG liquefaction
technologies, which are of US origin, will not be available
for Iran.
However,
two other technologies, viz 'Liquefin' process of Axens
(a wholly owned subsidiary of IFP of France) and 'MFC'
process of Linde (a German company) are available, with
both the European companies having confirmed their willingness
and interest to provide their technology for the proposed
project in Iran.
Of
the total LNG produced, IOC will buy 4.5 million tonnes
per annum for shipping to Ennore LNG receipt terminal
in Tamil Nadu. The IOC shall also retain a 'first right
of refusal' for the purchase of the balance quantity of
4.5 million tonnes per annum.
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