India seeking to buy liquefied natural gas from Iran

Tehran, Aug 12, IRNA – India is considering the purchase of liquefied natural gas (LNG) from Iran, State Minister of Petroleum and Natural Gas Dharmendra Pradhan said Wednesday.

In July, the UN Security Council approved a resolution to lift the international sanctions against Iran in exchange for guarantees of the peaceful nature of Tehran’s nuclear program. Iranian Deputy Oil Minister Amir Hossein Zamaninia said the sanctions imposed on Iran’s oil and gas sector were expected to be lifted in October or November.
‘With the lifting of sanctions, Iran is again planning LNG liquefaction facilities. An Indian delegation visited Iran during last week of July, 2015, wherein Indian side indicated their willingness to off take LNG from Iran,’ Pradhan informed the upper house of the Indian parliament in a written reply.
In 2005, India’s gas transmission company GAIL, alongside Indian Oil Corporation and Brahmaputra Cracker and Polymer Limited, signed a contract with the National Iranian Gas Export Company (NIGEC) to buy 5 million metric tons of LNG annually, according to Pradhan’s statement.
The NIGEC failed to execute the contract as it had not received an approval from the National Iranian Oil Company, according to
Pradhan said India’s demand for gas was expected to increase by almost one-third in 2018 and 2019.
India’s import of energy resources reportedly accounts for 75 percent of the country’s total energy requirements.