Managing director of Iran National Gas Exports Company said Saturday that it has signed an agreement with India to export 5 million tons of Liquid Natural Gas (LNG) per year. Rokneddin Javadi said that the agreement is the first of its kind in the "NIOC-LNG project."
The gas is to be extracted from the phase 12 of the South Pars gas field, he added. The gas contract prices are derivatives of crude oil prices.
The LNG is shipped to India via Persian Gulf ports based on FOB prices, the gas official stated, according to IRIB.
He said that the agreement will not adversely affect the on-going negotiations with South Korea and it is likely that similar contracts will be concluded with Seoul.
The current production capacity of the NIOC-LNG project is about 10 million tons per year with the capability of doubling the production volume in the future, Javadi underlined.
India has reached an agreement with Iran to buy 5 million tones of liquefied natural gas for 25 years.