By Shirish Nadkarni
OGJ Correspondent
MUMBAI, Feb. 25 -- Iran has extended an official invitation to Indian oil and gas companies to participate in development of giant South Pars natural gas field off Iran.
Of 28 South Pars development phases, 18 have been allotted to international firms and currently are in various stages of development (OGJ Online, Sept. 14, 2004).
From the remaining phases, Iran plans to dedicate one block for exporting gas to India through the proposed land pipeline planned to pass through Pakistan, said National Iranian Gas Export Co. Chairman M.H. Rahabari.
For development of this block, Iran has invited participation from several Indian firms, including Oil & Natural Gas Corp., Indian Oil Corp., Oil India Ltd., and state-owned gas transmission firm GAIL (India) Ltd.
The 2,775-km pipeline, expected to come on line by 2009, was made possible after relations between India and Pakistan thawed in 2003-04.
Iran also has committed to export 7.5 million tonnes/year of LNG from another phase of South Pars field to India beginning in 2009.
Rahabari has held discussions with India on the technical aspects of LNG and pipeline gas exports. Iran is seeking international financing for the projects.
Rahabari said Iran is looking to supply India a richer gas than that being supplied to European customers from development phase 18.
Indian Petroleum Minister Mani Shankar Aiyar plans to visit Tehran in June to hold talks on the Iran-India pipeline.
India now wants 100 million cu m/day instead of the 60 million cu m/day planned in the original feasibility study, while Pakistan is seeking 50 million cu m/day, compared with its earlier projection of 15 million cu m/day of gas.
"If we want to change the scale we need to get another feasibility study done, both of the technical and commercial aspects," said Rahabari. "Commercially we believe we can meet each other at some point, but technically we need to study which would be the most competitive."
India will enter into an agreement with Tehran for delivery of gas to the Indian border, and New Delhi would not be associated with the construction, maintenance, or operation of the pipeline, 760 km of which would be in Pakistani territory.
"India will not enter into any agreement with Pakistan, but deal only with Iran on the issue," said Aiyar. "It will be Tehran's responsibility to court Pakistan for the laying of the pipeline and safe delivery of gas on the Indian border."
