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India, Iran to sign LNG pact in June
Publish Date : 5/25/2005 11:32:00 AM Source : Moneyplans.net Staff

India is expected to sign a sale-purchase agreement for importing 7.5 million tonnes of liquefied natural gas (LNG) from Iran when Petroleum Minister Mani Shankar Aiyar visits that country June 11-13.

The two countries had signed a memorandum of understanding during January and have since then been ironing out commercial and technical details of the first gas sale agreement between them. The gas supplies are expected to begin in 2009.

"All major issues related with the sale-purchase of 7.5 million tonnes of LNG have been resolved. The Iranian team will be here next week to finalise the draft of the agreement to be signed," Aiyar told reporters after meeting R. Javedi, managing director of National Iranian Gas and Export Company (NIGEC) and his team.

It has been agreed that Iran will supply LNG in two lots with the first tranche of five million tonnes beginning 2009 and the remainder from 2011.

During its three-day visit, the Iranian team led by Javedi held discussions with GAIL (India) Ltd and petroleum ministry officials on the proposed gas pipeline from Iran to India via Pakistan.

"We understand each other's point of view much better. In fact, I am much better prepared for the Pakistan visit now than before," said Aiyar.

Aiyar is scheduled to visit Pakistan June 4-7 to hold the first formal bilateral talks on hydrocarbon cooperation, including the proposed pipeline project and possible export of diesel from India.

 
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