Iran claims its gas much cheaper than Turkmenistan's offer to India

Dubai, Sep 6 (UNI) Iran has claimed that it would offer gas to India three times cheaper than Turkmenistan's offer.

Iran's price of gas via Iran-Pakistan-India (IPI) pipeline to India would be three times cheaper than Turkmenistan offer price for the gas to be sold to India via Turkmenistan-Afghanistan- Pakistan-India (TAPI) pipeline, an Iranian News Agency (IRNA) report said.

Turkmenistan reportedly wants to charge 400-450 dollars per thousand cubic meters (12.5 dollars per million British thermal unit, MBTU) for the gas from its Dauletabad fields it wants to sell to India through TAPI pipeline.

After adding transportation costs and transit fee payable to Afghanistan and Pakistan, the price of imported gas for India through TAPI will be close to 18 dollars per MBTU compared to 5.56 dollars per MBTU for the gas it can import from the rival IPI pipeline.

The Iranian Fars News Agency quoting a former Iranian Deputy Oil Minister Mohammad Hadi Nejad Hossenian said Iran was concerned that the agreed price of exported gas to India might be too low and in case of implementation of IPI project Iran would suffer a heavy loss.

Gas producers are increasingly base the gas price to the oil price, arguing cleaner energy source, natural gas, should have 16 per cent higher price than the prevailing oil price.

He said the price formula agreed between the two countries is two or three times lower than the current international gas price.

Turkmenistan has agreed to sell 50 billion meter gas to Iran and Russia and 40 billion to China.

UNI XC MP CS2138