India proposes to invest $6.5 billion in Iran gas fields

[ssheppard]

NEW DELHI: India today proposed to invest $ 6.5 billion to develop gas fields in Iran and sought more liquefied natural gas (LNG) from that country.

At the same time, India asked Iran to honour the 2005 LNG import deal and ensure secured supplies of gas through the Iran-Pakistan-India pipeline.

In the first high-level contact in two years, India told the visiting Iranian Deputy Oil Minister and National Iranian Oil Co (NIOC) Managing Director, Seifollah Jashnsaz, that it was keen to buy 5 million tonnes of LNG a year besides the ones signed in 2005, sources said.

India also asked Iran to give the ONGC Videsh-led group rights to develop the gas field it discovered in the offshore Farsi block. It sought 20-25 per cent stake for the overseas investment arm of Oil and Natural Gas Corp (ONGC) in the Phase-12 of the gigantic South Pars gas field in the Gulf.

Sources said Jashnsaz was told to honour the 2005 LNG agreement which NIOC had previously blocked, saying the gas price in the signed deal was too low.

On the $7.4 billion Iran-Pakistan-India gas pipeline, India said it was willing to be part of the project provided Iran guarantees safety of the pipeline in Pakistan.

India said it would take delivery of the gas on the Pakistan-India border rather than the proposed sale point at Iran-Pakistan border, sources said, adding this way Iran would be responsible for passage of gas in Pakistan and will have to bear losses if the pipeline is disrupted.

India proposes to invest $6.5 billion in Iran gas fields- Oil & Gas-Energy-News By Industry-News-The Economic Times

 

[inferno]

Well!!!! Smart move by GOI...

 

[mrwarrior006]

well well diplomacy at its best

 

[idune]

lots of talks and nothing in substence. india told lots of things but how much iran agreed or signed contract for?

 

[mrwarrior006]

^^do u understand english or not

At the same time, India asked Iran to honour the 2005 LNG import deal and ensure secured supplies of gas through the Iran-Pakistan-India pipeline.

so its upto iran to decide not india

 

[haawk]

if iran wants the deal to go through.....it has to to address india's consern of safe supply through pakistan....india cannot bare the losses if pakistan decides to obstruct the gas flow coz of some future tension.....this a legimate concern ....and a smart move by india in this......besides we are investing an additional of 6.5 billion in iran gas fields apart from the ipi pipeline........considering the sanctions against iran this is a big move by india to invest in iran ...so they have to give assurance that our supply will be obstructed

 

[Red Dwarf]

These all depend on Iran. By doing all the bad for Iran during India-America nuclear deal how can India ask Iran to honor the deal.

 

[Cheetah786]

if iran wants the deal to go through.....it has to to address india's consern of safe supply through pakistan....india cannot bare the losses if pakistan decides to obstruct the gas flow coz of some future tension.....this a legimate concern ....and a smart move by india in this......besides we are investing an additional of 6.5 billion in iran gas fields apart from the ipi pipeline........considering the sanctions against iran this is a big move by india to invest in iran ...so they have to give assurance that our supply will be obstructed

sticking point last time was the price indians were willing to pay and iranians wanted to charge not the security of the pipeline.
We simply will charge transit fee as we should it dosent matter if the cheq comes from india or iran.

 

[FlickerSingh]

sticking point last time was the price indians were willing to pay and iranians wanted to charge not the security of the pipeline.
We simply will charge transit fee as we should it dosent matter if the cheq comes from india or iran.

yes. I think security is not the issue here since Pakistan is capable of handling that considering that the transit fee is very profitable to Pakistan who wouldnt want to lose the revenue. The only issue is the price. If Iran refuse to honor original deal and sell at the price agreed then it becomes a problem.

 

[idune]

if iran wants the deal to go through.....it has to to address india's consern of safe supply through pakistan....india cannot bare the losses if pakistan decides to obstruct the gas flow coz of some future tension.....this a legimate concern ....and a smart move by india in this......besides we are investing an additional of 6.5 billion in iran gas fields apart from the ipi pipeline........considering the sanctions against iran this is a big move by india to invest in iran ...so they have to give assurance that our supply will be obstructed

Iran is not that hungry for $6.5 billion investment. Besides, it has bigger customers already lined up China alone has more than $100 billion worth of deals and contract. Then Japan also has sizeable investment with Iran. Malaysia has $16 billion deal. These deals are done when sanction are in place. So sanction card india try to bank on is really dead on arrival.

From simple business prospective why should Iran take extra headche of indian conflict resolution, when Iran already has customers who they can sell without such headache and better price than india wants squeeze in?

All in all good luck with whole lot of wishes and talks...

 

[mrwarrior006]

^^^then wy is iran asking india to tell fasty whether it wants to participate in IPI

 

[FlickerSingh]

Iran is not that hungry for $6.5 billion investment. Besides, it has bigger customers already lined up China alone has more than $100 billion worth of deals and contract. Then Japan also has sizeable investment with Iran. Malaysia has $16 billion deal. These deals are done when sanction are in place. So sanction card india try to bank on is really dead on arrival.

From simple business prospective why should Iran take extra headche of indian conflict resolution, when Iran already has customers who they can sell without such headache and better price than india wants squeeze in?

All in all good luck with whole lot of wishes and talks...

You shouldnt be so negative since your country also benefits with this Iran-India deal. Maybe you should be rooting for India at better price

 

[SU-57E]

@mr.warrior
dont reply the trollers . they are just here for their anti-india campaigning.....

anyway iran is our trading partner .. so if the deal happens ...it will be a win-win situation for all