Iran Offer Gas at $2.95 mmBtu to Urea Plant Set to be Built by India at Chabahar Port

Iran has offered to supply natural gas at $2.95 mmBtu for a urea plant that India will set up at Chabahar port on the Persian Gulf, Press Trust of India reported Wednesday.

New Delhi is in talks with Tehran to build a gas based urea plant at Chabahar port and is also discussing plans to develop a gas field discovered by ONGC Videsh.

India’s Road Transport, Highways and Shipping Minister Nitin Gadkari said on Wednesday that Iran has offered a price of $2.95 mmBtu but New Delhi is negotiating a price of $1.5 per mmBtu, Press Trust reported.

The rate offered by Iran is less than half the rate at which India currently imports natural gas from the spot or current market. Long-term supplies from Qatar cost four-times the Iranian price.

India has already pledged to invest about $85 million in developing the strategic port off Iran's south eastern coast, which would provide India a sea-land access route to Afghanistan bypassing Pakistan.