Iran hikes price of natural gas coming through IPI pipeline
Tuesday, 24 February 2009
NEW DELHI, Feb 23 (PTI): 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 India.
At the current crude oil price of USD 40 a barrel, Iranian gas will cost New Delhi USD 5.9 per million British thermal unit at Iran-Pakistan border, sources said.
Iran, which had originally priced its gas at USD 3.2, had in 2007 revised the rates to USD 4.93 per mBtu at USD 60 a barrel crude oil prices, which was accepted by India.
Sources said Iran has again changed the formulation that would mean India paying USD 7.1 per mBtu in the likely event of oil prices rising to USD 50 and USD 8.3 per mBtu if oil price was to touch USD 60 a barrel.
At the current crude oil price of USD 40 a barrel, Iranian gas will cost New Delhi USD 5.9 per million British thermal unit at Iran-Pakistan border, sources said.
Iran, which had originally priced its gas at USD 3.2, had in 2007 revised the rates to USD 4.93 per mBtu at USD 60 a barrel crude oil prices, which was accepted by India.
Sources said Iran has again changed the formulation that would mean India paying USD 7.1 per mBtu in the likely event of oil prices rising to USD 50 and USD 8.3 per mBtu if oil price was to touch USD 60 a barrel.