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| Iran hikes price of natural gas coming through IPI pipeline |
| Press Trust of India / New Delhi Feb 22, 2009, 14:20 IST |
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Iran has jacked-up by 20 per cent the price of natural gas that is to flow through the long-delayed Iran-Pakistan-India pipeline, making it the most expensive fuel in the country.
At the current crude oil price of $40 a barrel, Iranian gas will cost New Delhi $5.9 per million British thermal unit at Iran-Pakistan border, sources said.
Iran, which had originally priced its gas at $3.2, had in 2007 revised the rates to $4.93 per mBtu at $60 a barrel crude oil prices, which was accepted by India.
Sources said Iran has again changed the formulation that would mean India paying $7.1 per mBtu in the likely event of oil prices rising to $50 and $8.3 per mBtu if oil price was to touch $60 a barrel.
Added to this would be a minimum of $1.1-1.2 per mBtu towards transportation cost and transit fee that India would have to pay for wheeling the gas through Pakistan, they said.
Gas from the Panna/Mukta and Tapti fields in Mumbai offshore fetches the maximum $5.70 per mBtu, while Reliance Industries' Krishna Godavari basin gas has been priced at $4.20 per mBtu if crude oil price was $60 or more.
Sources said New Delhi was likely to reject the changes, which were conveyed by Iranian chief negotiator H Ghanimi Fard to Indian Ambassador to Iran last month, as unilateral revisions was against the spirit of stable contract regime.
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