India's $22b deal to buy LNG from Iran uncertain
Pallab Bhattacharya, New Delhi
India's largest-ever overseas deal worth over 22 billion dollars for import of LNG (Liquefied Natural Gas) from Iran yesterday appeared uncertain with Tehran indicating that it will not honour the contract signed in June 2005 unless New Delhi paid a higher price.Iran's Supreme Economic Council feels the previous regime "undersold" when it agreed to supply five million tonnes per annum of LNG for 25 years beginning 2009-10 for a cap price of 3.25 dollars per million British thermal unit (mBtu). "As far as we are concerned, the deal is not implementable unless the Supreme Council ratifies it. The Council has not done it till now because it wants certain changes," Iranian Deputy Oil Minister Hadi Nejad Hosseinian told reporters here. Though he did not specify the changes sought, Petroleum Minister Murli Deora said "The main difference was on price. Let's face it." "We have obtained legal opinion and the deal is not binding on us," the Iranian minister said. Deora, who met Prime Minister Manmohan Singh just before his meeting with the Iranian minister, said India was opposed to revisiting the price agreed in June but would continue negotiations. "No we are not considering taking Iran to International Court of Arbitration. Iran is a friendly country and we would continue to engage with them."
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