Honour the commitment: Deora to Iran over LNG prices

New Delhi, Jan 15 (UNI) Ahead of the Iranian oil minister's visit to India, the government today reiterated its unwillingness to pay more than the earlier negotiated price of 22 billion dollars for supply of five-million-tonnes liquefied natural gas (LNG) per annum for 25 years beginning 2009-end.

''Iran should honour the commitment first at the price and quantity negotiated earlier,'' Union Petroleum and Natural Gas Minister Murli Deora told reporters on the sidelines of the inaugural ceremony of the Oil and Gas Conservation Fortnight here.

He, however, said that any LNG if bought over the five-million tonnes level can be negotiated at higher prices.

''We need much more gas than this (five million tonnes per year) quantity. Any negotiations over and above the current level can be worked out at higher prices,'' the minister added.

The issue was discussed several times at meetings with Iranian delegations and the country's President in the past.

India entered into a contract with Iran to import the LNG with an option to buy an additional 2.5 million tonnes in early 2005.

In May last year, Iran informed New Delhi that the price agreed between them in June 2005 was not valid, as its Supreme Economic Council had not approved the prices at 3.25 dollar per million British thermal units.

''We are constantly in touch with them. Unfortunately the discussions have not been friutful till now,'' the minister added.

Iran Oil Minister Kazem Vaziri Hamaneh, along with representatives from nine other oil producing countries will attend the International Oil and Gas Conference, Petrotech 2007, which starts in the capital tomorrow.

The two counterparts will also discuss the Iran-India-Pakistan gas pipeline project. The three countries had earlier held discussions on the project in Islamabad, Doha and the secretary-level talks in Tehran on January 20-21 on the pricing of gas are also being planned.

At Petrotech 2007, the oil ministers are expected to resolve many international concerns related to the oil and gas industry by precipitating a collective approach toward the challenges, based on discussions among many of the OPEC Oil Ministers who would be attending the conference.

The conference will also see oil ministers of Nigeria, Venezuela, Saudi Arabia, Qatar, Sudan, Romania, Myanmar, Sri Lanka and Yemen participating in it.

UNI