India seeks Australian gas

India looks for LNG-imports from non-Middle Eastern sources: India imports LNG from Qatar and is looking to buy more from other Persian Gulf states, like Iran. But New Delhi also needs to diversify its sources of imported against the interruption of Middle East supplies. And this makes LNG producers outside the Gulf but in the Indian Ocean – Malaysia, Indonesia, potentially Myanmar, and Australia – attractive.

Gas, LNG prices converge: Moreover, the price advantage of piped gas over LNG, in a climate of rising gas prices worldwide, may be becoming less of a factor.

India haggles with Iran over gas price: After lengthy negotiations failed to bridge the gap between India’s reported offer of $US2.05 per million British thermal units and Iran’s demand of $US7.20 per mmbtu, earlier this month the two sides asked an independent consultant to calculate an acceptable price.

Iranian leader says no mates rates: But as Iranian President Mahmoud Ahmadinejad said recently the cost to India of Iranian gas "cannot be very far away from international prices."

The Australian Financial Review, 30/8/2006, p.16

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