India’s GAIL Seeks to Revive LNG Contract with Iran: Report
TEHRAN (Tasnim) – India’s state-run gas utility GAIL plans to revive a decade-old LNG supply contract with Iran, media reports said.
According to Indian sources, the firm has started talks with Tehran over a $22-billion contract it signed with the National Iranian Gas Export Company (NIGEC) back on June 13, 2005.
"Dialogue has been initiated with Iranian counterparts to revive the LNG supply long-term SPA (Sale and Purchase Agreement)," NDTV quoted GAIL as announcing in its latest annual report on Sunday.
"Iran has so far not responded to the offer," a GAIL official said. "There is a half-finished LNG export terminal in Iran which will have to be completed before any export of LNG can begin from Iran."
In 2005, three Indian firms, namely GAIL, Indian Oil Corp (IOC) and Bharat Petroleum Corp Ltd (BPCL), signed deals with NIGEC for purchasing a total of 5 million tons a year of LNG from Iran.
According to the terms of the deals, GAIL is expected to buy 2 million tons per annum of LNG from NIGEC while refiner Indian Oil Corp (IOC) has signed for 1.75 million tons. Bharat Petroleum Corp Ltd (BPCL) is to take another 1.25 million tons.
