IOC still waiting for Iran to reply to LNG proposal

Vol 9, PW 7 (14 Jul 05) News in Brief

Indian Oil is still waiting for Iran to respond to its application to set up a natural gas liquefaction facility to export LNG to India.

On 28th February, IOC and state-owned Petropars of Iran submitted a joint application to state-owned National Iranian Oil Company for allocation of gas to set up a 9m t/y LNG facility. It was initially felt that the consortium would be allocated gas from one of the South Pars export phases but this has changed.

NIOC has indicated that IOC and Petropars will be considered for gas allocation from one of the North Pars phases, reveals an oil ministry source. Nothing has happened beyond that.

On 13th June, oil minister Mani Shankar Aiyar pressed IOCs case when he travelled to Tehran for the signing of a 25-year LNG import agreement with Iran. We are quite hopeful, we learn.

So far theres no competition. North Pars is not yet on production and lies partly onshore and partly offshore.