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Gail in Iran's LNG picture


Two companies get close in New Delhi



By Upstream staff 

The National Iranian Oil Company (NIOC) is willing to take on board state-owned Gas Authority of India (Gail) as the fourth co-venturer in the $2 billion Iran liquefied natural gas project, prompting the two companies to conduct a new feasibility study for an Iran-to-India pipeline that would pass through Pakistan.

NIOC vice president and chief executive Ahmad Rahgozar said: "We are open to Gail joining the consortium of NIOC, Reliance and BP for the 8-million-tonnes-per-annum South Pars LNG plant."

NIOC has 40% equity in the project with Reliance and BP holding 25% apiece which leaves one tenth available for another partner.

"We would like to see more Indian companies joining the project and Gail stands a good chance," he said, reported the PTI news agency.

Foster Wheeler is expected to submit its feasibility report on the LNG project, which would supply natural gas to India, by the end of next month.

Rahgozar said initial data was very encouraging and that the consortium would finalise the project costing and firm up development plans soon after receiving the report.

First gas from the Iran project is projected to arrive at Reliance’s proposed $250 million import and regasification terminal at Jamnagar, western India, in 2006.

The feasibility study envisages a two-train plant with an initial capacity of 8 million tpa fuelled by gas from the offshore South Pars field. Reliance would market between 5 to 6 million tpa with the remainder being marketed by BP, reported PTI.

Meanwhile, BHP Billiton is already conducting a study on the onshore pipeline, while Snamprogetti is studying the prospects of bringing natural gas from Iran through a deep-sea pipeline.

Rahgozar said Snamprogetti's study on the offshore pipeline would be acceptable, but a new study would be useful on the different alternatives of the onshore route.


Friday, 18 January, 2002, 06:19 GMT  | last updated: Tuesday, 03 May, 2005, 13:23 GMT

Good advice: a sign at earlier Pars construction could point the way forward for negotiators on the latest development of the landmark gas project
 

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