Iran tempers anger, says India deals on track

This was echoed today by the Iranian Embassy here, which quoted Larijani’s comments in response to questions while denying a news report that Iran had decided to call off the LNG deal agreed to in June during Petroleum Minister Mani Shankar Aiyar’s visit.

‘‘The agreements between the two countries are still in force and passing through the normal processes,’’ said an Iran embassy spokesperson.

The agreement on importing 5 million tonnes of LNG from Iran was signed in a combined way by IOC, BPCL and GAIL with the National Iranian Gas Exporting Company (NIGEC). This agreement has to, however, still be approved by the board of NIGEC’s parent company National Iranian Oil Company.

The political view on the matter has had a resonance. Mohammed Reza Nematzadeh, the managing director of Iran’s National Petrochemical Company—it’s not linked to the LNG deal but has other agreements with India—today said in Tehran that these ‘‘will be implemented in due time’’.

India, for its part, too clarified that there has been ‘‘no indication’’ of These signals assume significance given the economic deals on the table:

• Iran-Pakistan-India Gas Pipeline

• Sale and Purchase of 5.0 MTPA of LNG starting 2009—with an extra 2.5 million tonnes from mid-2011.

• Joint Venture for shipping 5 MTPA LNG from Tombak

• 10% participating interest in Yadavran field to ONGC Videsh in lieu of buying LNG.

• 100% rights for Jufeyr field to OVL in lieu of LNG.

• Exploration of Farsi block which is with OVL and Indian Oil Corp.

• Integrated LNG project between IOC and Iran’s Petropars for development of gas field

• Product upgrading project in Tehran & Tabriz Refineries

• IOC is talking to NaftIran Intertrade Co. Ltd. for buyout of Iran’s 15.38% equity in Chennai Petroleum Corporation Ltd.

• GAIL signed up with Iran firm in August 2002 for joint cooperation in the area of CNG.

• GAIL signed an MOU with NPC of Iran in November 2004 for joint study and investment in the gas cracker and methanol route to petrochemicals.