India signs $18 billion LNG deal with Iran

June 14, 2005
India has signed a deal with Iran worth $18 billion for the import of 5 million tonnes/year of LNG for 25 years, beginning in 2009.

Shirish Nadkarni
OGJ correspondent

MUMBAI, June 14 -- India has signed a deal with Iran worth $18 billion for the import of 5 million tonnes/year of LNG for 25 years, beginning in 2009.

As part of the deal, Iran will offer participating interests in oil fields to a consortium of Indian companies, including ONGC Videsh Ltd., Indian Oil Corp., Oil India Ltd., and GAIL (India) Ltd.

The consortium is to receive a 10% stake in Yadavaran oil field and a 100% participating interest in a smaller oil field, Juffair.

The two oil deals represent 60,000 b/d of oil for import by India.

The contract price for the Iranian LNG at the Indian border is about $3.515/MMbtu. Under an earlier deal with Qatar, India pays $2.79/MMbtu for LNG.