Iran sending team to India for LNG talks with GAIL

Vol 8, PW 6 (16 Jun 04) News in Brief

Iran is sending a team to India later this month to continue discussions with GAIL on the import of 5m t/y LNG over 25 years.

A NIGEC (National Iranian Gas Export Company) team is scheduled in Delhi in the fourth week of this month, a source tells PETROWATCH. Discussions on the term sheet are progressing well.

GAIL should be able to sign a contract in three months. GAIL wants to bid Iranian LNG for two gas supply tenders where it is bidding alone: Reliance Energys tender for 3.5m t/y natural gas or LNG for the proposed Dadri power station in northern India; and NTPCs proposed 2m t/y natural gas or LNG tender for the expansion of its Kayamkulam plant in Kerala.

In both tenders, GAIL is competing for gas supply with Petronet-LNG. We are exploring all potential sources for LNG supply so that we can put in a good offer, a GAIL source says.

We have an open mind. Eventually well have to select one supplier.