India’s stock exchange had sought clarification from GAIL with respect to news reports that the company entered talks with Iran to revive old LNG deal.
In its reply to the stock exchange, GAIL said, “This is to inform that though GAIL in June 2005 had signed a bilateral Sale & Purchase Agreement for import of 2 MMTPA of LNG from National Iranian Gas Export Company, the SPA is kept in abeyance as NIGEC informed GAIL that the SPA has not been ratified by their Government further, owing to sanctions, Iran has still not been able to set up any LNG liquefaction terminal in Iran.”
In a recent visit of Indian delegation to Iran, the issue of LNG export to India was discussed. Citing the SPA, GAIL requested Iranian authorities that GAIL should be given preference for such LNG export whenever Iran is able to supply LNG, stands in the filing.
The 2005 deal saw two other companies, Indian Oil and Bharat Petroleum book 1.75 and 1.25 mtpa of LNG respectively.
LNG World News Staff; Image: K Line