New Delhi: Under a government-to-government deal signed in June 2005, Iran was to sell liquefied natural gas (LNG) to public sector firms (PSU).
But now Anil Dhirubhai Ambani Group (ADAG) and Ruias-owned Essar Group are separately holding negotiations with the Islamic nation to buy the LNG as Tehran refused to honour the deal at a price that PSUs offer.
The IOC-GAIL-BPCL combine in June 2005 signed a $22-billion deal to import 5 million tons of LNG from Iran beginning 2010. However, the new government in Tehran has refused to honour the deal unless a higher price is paid and has opened dialogue with private sector firms to sell the gas.
Sources said Iran has sent feelers to the Indian Government seeking transfer of the volumes committed in June 2005 to private firms.
Tehran has told the Petroleum Ministry that if the Indian state-run firms cannot reopen the June 2005 contract, New Delhi should endorse the deal in favour of private firms.
When contacted, Petroleum Minister Murli Deora said Iranian Ambassador to India met him on Tuesday with a request that National Iranian Oil Company (NIOC) be permitted to negotiate the June 2005 volumes with private sector.
"We have told them that first they should honour the government-to-government contract. They are most welcome to sell additional volumes to private companies," PTI quoted Deora as saying.
Deora said Anil Ambani Group, which needs at least 28 million standard cubic meters per day (7 million tons of LNG) for its proposed 7,000 MW Dadri power plant in Uttar Pradesh, is talking to Iran for the fuel.
Essar Group, which needs gas to feed its power and steel plants, is also in discussions with Iran.
Deora, however, did not say what actions New Delhi can take if Iran refused to honour the June 2005 deal in favour of Indian Oil-GAIL-Bharat Petroleum combine.
"We are for government-to-government deal... but there is a possibility of (LNG) sale to a consortium of private and public sector companies," Iran's Ambassador to India Siyavash Zargar Yaghoubi said without elaborating.
Spokespersons of ADAG and Essar Group have refused to comment.
Comments
0 comment