November talks over term sheet for LNG from Iran

Vol 7, PW 18 (19 Nov 03) News in Brief

GAIL and IOC continue discussions later this month with state-owned National Iranian Gas Export Company over the term sheet to buy LNG from Iran.

An IOC source tells PETROWATCH two meetings have already taken place and this months meeting will be the third. Current plans are for India to buy 5m t/y LNG from Irans prolific South Pars gasfield.

Discussions are progressing satisfactorily, says our source. There are no major hurdles.

We have a broad term sheet and are now in the process of narrowing down the outstanding areas. Under a January deal between the two governments, Iran will offer Indias ONGC Videsh one producing and one semi-discovered field in exchange for a commitment to export 5m t/y LNG for 25 years to India.

According to the deal India will import the LNG in two phases. For the first four years, India will import 2.5m t/y LNG and two years later will import the balance 2.5m t/y.