Iran willing to sell gas and technical services to India

New Delhi, Sept 20, IRNA Nasrollah Seifi, Managing Director, the National Gas Exporting Company
of Iran in response to the invitations of the Indian private companies
attended a three-day seminar in New Delhi.

While the international companies reviewed the projects on selling
energy and services in India, the Managing Director of the National
Gas Exporting Company of Iran, in an exclusive interview with IRNA,
explained the possible ways of meeting the energy needs of India and
the special and unique capabilities of Iran in achieving the same.

According to Seifi, the picture presented in the seminar about India's
energy situation shows that the county if not now but certainly in
future would face an energy crisis.

"Apart from the energy, India's need for a city gas pipeline network
and the technical services is very intense," he said.

Seifi added: in both the areas, providing gas and the technical
services, Iran can assist India just like the help extended by the
Indian companies in the upstream sectors in Iran.

The Managing Director of National Gas Exporting Company of Iran termed
the situation as a golden opportunity where Iran and India could
commence extensive strategic trade cooperation at different levels.

According to the discussions in the seminar, the figures about the use
of the natural gas in India indicate a huge demand for the gas in the
country in all areas of industry, domestic and transportation, he said.

Referring to India's plans to diversify its mode of energy
transportation, Seifi: "India is willing to replace diesel and
petroleum with the different forms of gas such as Compressed Natural
Gas (C.N.G.) which, certainly, would have also positive environmental
impacts.

"Though India is planning to bring 200 of its cities under the gas
pipeline network by 2020, the number of the Indian cities now covered
by such a network is less than that of the fingers of a hand," Seifi
said.

Referring to the figures announced by the Indian public and privet
companies, he said that India at the present uses around 150 million
cubic meter of gas a day.

"If India is committed to its economic program, the figure by 2012
would increase by three fold, though the question on the source of the
gas required to implement the program remains unanswered, Seifi added.

Referring to the suggestions made by some experts on India's need to
obtain gas from the domestic and foreign sources, Seifi said:
"certain exploration also have been done in the Indian Sub-continent
but they have not been much successful and the offshore reserves
discovered till the date are not sufficient to meet India's ever
increasing energy demand."
"The import of gas, therefore, is inevitable for India. The country at
the present is importing L.N.G. from Qatar. But doing so at the
present prices would come dearly for India", he added.

Seifi said: "Importing gas from Iran is also among the plans that
India has announced so far. The imports from Iran would take place
through the peace pipeline."
"The Indian officials are also planning to import gas from
Turkmenistan and Myanmar though they agree that such plans would never
be a substitute for the peace pipeline." He added.

Seifi said: "the plans announced by the gas providers in India showing
the huge requirement of the country for gas are of great interest for
us."
Given the information provided by the seminar on India's plans to
invest around Rs. 800 billion in expanding its gas pipeline networks,
Seifi said: "the amount is equivalent to about 20 billion dollars
which, given the increase in the cost of contracts and row materials
during the coming year, would go northward."