OVL Cancels Iran LNG Export Facility

OVL Cancels Iran LNG Export Facility

ONGC Videsh Ltd (OVL) has canceled its plans to establish a liquefied natural gas (LNG) export facility worth $5 billion in Iran, Times of India reported.

The company decided to invest only in developing a huge gas field located in the Persian Gulf, for which a revised cost is being prepared, according to the Hindu.

In 2017, OVL made an offer to invest $11 billion in developing the Farzad-B field and to build the required infrastructure for exporting the gas. However, Iran rejected the company’s offer due to disagreements over investments and the price of gas.

The two parties agreed to cooperate in the development of the upstream field, while Iran will retain control over marketing the produced fuel.

OVL is the overseas arm of India’s state-owned Oil and Natural Gas Corporation (ONGC).

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Sarah Samir 3518 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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