NEW DELHI (Reuters) - India said it is interested in importing liquefied natural gas (LNG) from Iraq, with imports of the cleaner fuel becoming attractive after New Delhi decided to raise prices of locally produced gas from April 2014.
Iraq has emerged as the second-biggest crude oil supplier to India after supplies from Iran were hit due to pressure from western sanctions.
Reliance Industries has been short-listed to develop its Nasiriya oilfield and refinery.
"India will also be interested in gas-based projects and importing LNG from Iraq," said a government statement on Monday detailing a discussion of oil minister M. Veerappa Moily with Iraqi Prime Minister Nouri Al-Maliki.
Moily is in Baghdad to attend a two-day meeting of the India-Iraq Joint Commission.
India last month took the unpopular step of approving a gas price rise for the first time in three years, a move which could inject much needed investment in local production but boost imports of more costly LNG.
(Reporting by Nidhi Verma; Editing by Muralikumar Anantharaman)