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Indian GAIL and Reliance Industries Limited companies are due to set up a gas-burning Petrochemical complex in Qatar.

The companies have negotiated about establishing the complex with Qatar Petroleum.

Besides, there are some media reports that Petronet LNG Limited is discussing import of LNG to expand capacity in Dahej and for planned Kochi terminal with RasGas Qatar.

Petronet LNG Limited inked a contract with RasGas, Qatar in July 1999 to import 7.5 million metric ton per annum of Liquefied Natural Gas for a period of 25 years.

According to the contract, supply of 5 million metric ton per annum of LNG began in 2004 and the supply of balance 2.5 million metric ton per annum of LNG will start in the last quarter of 2009.

Also, Indian Consortium of GAIL Limited, Indian Oil Corporation & Bharat Petroleum Corporation Limited inked a Sale Purchase Agreement in Tehran on June 13th 2005 to purchase 5 million metric ton per annum of LNG with National Iranian Gas Export Company.

The contract will begin from the last quarter of 2009 and will continue for 25 years.

India is also due to import Iranian gas through a multi-billion-dollar pipeline which is to take Iran’s rich energy reserves to the South Asian country via Pakistan.

Iran and Pakistan initiated a Gas Sales Purchase Agreement on the project last year.

Indian and Pakistani officials also announced that they had resolved almost all bilateral issues including transit fee which saw New Delhi boycotting IPI pipeline talks for about a year.

In June, Pakistan Foreign Minister Shah Mahmood Qureshi, who met New Delhi’s Oil Minister Murli Deora said that the two sides have resolved all bilateral issues.

India has more or less agreed to give Pakistan a transit fee of $200 million per year, which is equivalent to $0.60 per million British thermal unit for allowing passage of the pipeline through that country.

India and Pakistan finally agreed in February 2007 to pay Iran $4.93 per million British thermal units ($4.67/GJ) but some details relating to price adjustment remained open to further negotiation. There was a breakthrough in the talks in April 2008 when Iranian President Mahmoud Ahmadinejad visited Pakistan and India.

According to the project proposal, the pipeline will begin from Iran’s Assalouyeh Energy Zone in the south and stretch over 1,100 km through Iran. In Pakistan, it will pass through Baluchistan and Sindh but officials now say the route may be changed if China agrees to the project.

The gas will be supplied from the South Pars field. The initial capacity of the pipeline will be 22 billion cubic meter of natural gas per annum, which is expected to be later raised to 55 billion cubic meter. It is expected to cost $7.4 billion.

According to Indian ministry sources, the IPI gas pipeline is quite crucial for New Delhi as after signing of the agreement, 60 million standard cubic meters per day (mmscmd) of gas is expected to be supplied in phase-I, which will be shared equally between India and Pakistan.


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