5 mt LNG from Iran by year-end

Talks on about request for additional 2.5 mt LNG; ONGC may develop Zufeyr field in Iran.

Iran is close to selling 5 million tonnes of liquefied natural gas to India and an agreement between the two countries is likely to be reached by the year-end. Discussions are also on about India's request for additional 2.5 mt LNG.

"We think negotiations will be concluded by the year-end. We will reach a final decision in a month or two," said Iranian Deputy Minister of Petroleum and Nationa Iranian Oil Company President Mehdi Mirmoezi while speaking to Business Standard at the 18th World Petroleum Congress today.

He added that talks with ONGC were also on for the development of the Zufeyr field in Iran.

On whether the Iranian government had asked the company to shelve the LNG deal, which was concluded with Indian Oil Corporation and GAIL (India) in June, he said, "Till now we have not received such direction."

Iran had on Tuesday said it would reconsider economic ties with countries that had voted against it at last week's International Atomic Energy Agency (IAEA) meeting.

A foreign ministry spokesman said Tehran was particularly surprised by India's vote. Iran and India are also engaged in discussions on a natural gas pipeline that will cross Pakistan.

The spokesman said India's vote at the IAEA meeting "came as a great surprise to us".

Mirmoezi, however, added, "I think this matter will not in any way affect our relationship. We hope that the relationship can be renewed in the next few months."

About the pipeline project, he said it would be helpful if other matters like the political issues between India and Pakistan were resolved.

Petroleum minister Mani Shankar Aiyar had visited Iran in June, where a sale and purchase agreement between the two countries for 5 mt LNG with an option of raising it to 7.5 mt was signed.

The import of 5 mt LNG is linked with India taking 20 per cent in the Yadavaran field, which has an estimated capacity to yield 60,000 barrels of oil per day (bpd).

The option of taking the additional 2.5 mt LNG is linked to ONGC getting 100 per cent operatorship of the Zufeyr field with an estimated capacity of 30,000 bpd.