India to raise price offer for Iran's LNG

By Staff
|
Google Oneindia News

New Delhi, Dec 11 (UNI) Petroleum Secretary M S Srinivasan today said India is considering raising the price offer for Iranian liquefied natural gas (LNG) long term supply of 25 years to 45-50 dollars per barrel of crude oil.

Mr Srinivasan said a final decision on the price would require cabinet approval."We may have to go to the higher-level for relaxation....''.

The move today comes close on the heels of Iran asking for a revised higher price for the five million tonnes LNG deal it had signed last year with India.

This would translate into a LNG price of about 4.5 per million dollars per British thermal unit (mBtu). The price though higher than the estimated 2.9 dollars per mBtu settled in the India-Iran agreement for five million tonnes of LNG supply per annum from 2009, is lower than the new price of over five dollars per mBtu being sought by Tehran.

"The possibility is under consideration. With the seesaw in the international price of crude, it (the price) has to be a well thought out decision," Mr Srinivasan said here.

Petroleum Minister Murli Deora had last month agreed to Iran's demand for renegotiations of LNG price.

UNI/RT SRS RN1845

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