Iran pipeline talks remain deadlocked

However, the Indian team does not expect Tehran to lower its price to levels that India and Pakistan want as the disparity between them was close to 60 per cent. While India is not willing to pay more than 4.25 per million British thermal unit, Iran8217;s crude-linked price offer works to 7.2-plus.

The agenda for the third round of talks had listed discussion on gas pricing only if there were new proposals since May 23 when talks broke down after Iran sought a price linked to international crude prices. Another reason for talks becoming unfruitful is the shifting stand of the Iranians that has resulted in almost all oil and gas proposals getting stuck or shelved, said an official.

Iran has so far annulled its offer for revamp of Tehran and Tabriz refineries and setting up of an olefin complex at Bandar Assaluyeh. It has also reneged on its price offer for 5 million tonnes of LNG that India plans to import. The oil field that had to be given to the Indian side as a cost offset for these LNG imports has also been changed at least five times.

A pact between Iran8217;s Petropars and Indian Oil Corp for development of gas fields and building liquefaction facility is also on hold as Tehran is now offering North Pars field instead of the gas-rich South Pars that it agreed earlier.

The CNG projects at Tehran and Karaj with GAIL India Ltd is stalled even though Ashok Leyland was roped in to partner the project. GAIL8217;s second proposal of a petrochemical project is still in the works, said officials.

The Farsi offshore block, where a trio of Indian firms plan to drill for oil, got delayed because foreign rigs were unavailable due to the US sanctions. Drilling by an ONGC rig provided dismal results.