Iran to Cooperate with India, Under Conditions

Iran to Cooperate with India, Under Conditions

Iran as has new conditions for cooperating with India. As the Islamic country wants India to pay more than triple the gas price for award of the coveted Farzad-B natural gas block to ONGC Videsh, reported Energy Infra Post.

Iran wants India to buy all of the natural gas that Iran produces from the Persian Gulf block at a price equivalent to the rate Qatar charges for selling liquefied natural gas (LNG) to India, informed Economic Times.

Qatar, as per a revised formula agreed upon in December 2015, sells 7.5 million tons a year of LNG to Petronet LNG LtdBSE 0.11 %, India’s biggest gas importer, at a price of $7 plus per 1m British thermal unit.

The rate being sought by Iran is triple of $2.3 per 1mmBtu rate. OVL is willing to pay for the gas during low global oil prices, but if global rates rise, OVL will then be willing to pay $4.3 per mmBtu,

Sarah Samir 3417 Posts

Sarah has been writing in the oil and gas field for 8 years. She has a Bachelor Degree in English Literature. She has three years of experience in the banking sector.

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