New Delhi Keen to Set Up LNG Terminal at Iran's Chahabar Port

India is keen to set up an LNG terminal at Iran’s Chahabar port, Indian oil minister Dharmendra Pradhan said on Monday.

New Delhi is looking to import Iranian gas in the form of LNG or through pipeline, the minister said, reported New Indian Express, a local English daily.

Pradhan, while speaking in the lower house of Indian parliament, asked Iran for favourable treatment in the pricing of gas for India on long term basis for the life of the joint venture projects than Indian companies are interested in setting up.

"Competitive gas pricing was crucial in making the projects attractive for the prospective investors," he said.  

India is also keen to set up fertilizer and petrochemical plants.

On his visit to Iran last month, Pradhan said New Delhi is ready to invest $20 billion for development of energy and petrochemical projects in Iran's Chabahar port.

Indian company South Asia Gas Enterprise Pvt. Ltd. (SAGE India) has proposed to build the undersea pipeline. The SAGE pipeline would originate at Chabahar on the southern coast of Iran and Ras Al-Jafan on the Oman coast, and after traversing deep in the Arabian Sea, would bring gas to Porbandar in south Gujarat.

In December last year, National Iranian Gas Export Co (NIGEC) Managing Director Alireza Kameli said at the World Energy Policy Summit in New Delhi that negotiations regarding the Iran-India undersea gas pipeline are under serious consideration.