India to invest up to $20 billion in oil, gas petrochemical, fertiliser projects in Iran

Stretching the energy ties with Iran, India is to invest up to $20 billion in oil and gas as well as petrochemical and fertiliser projects in the Persian Gulf country subject to provision of concessional rights. Oil Minister Dharmendra Pradhan has informed the Iranian side that India is interested in setting up petrochemical and fertiliser plants, including those in Chabahar SEZ, either through a joint venture between Indian and Iranian public sector companies or with private sector partners.

In this regard Pradhan has requested Iran to allocate appropriate and adequate land in the SEZ and has also requested the Iranian side for favourable treatment in the pricing of gas for India and supply of rich gas at competitive price on long-term basis for the life of joint venture projects Indian companies are interested in setting up.

Furthermore, Oil Minister Dharmendra Pradhan, on a two-day visit to Tehran from April 9, also discussed with his Iranian counterpart the repayment of nearly $6.5 billion that Indian refiners owe to Iran, but there is no agreement yet on rights to develop Farzad-B gas field in the Persian Gulf discovered by OVL. Pradhan conveyed that India is committed towards making payments as and when banking channels, acceptable to both sides, are available.

Pradhan also conveyed to the Iranian side that both countries must expand the basket of oil and gas trade. He expressed India’s interest in importing LPG from Iran and said companies from both sides could discuss on setting up an extraction plant in Chabahar, if required. Both sides agreed to continue examining various means of evacuation of gas such as LNG, including through the proposed Iran-Pakistan-India pipeline.