Friday, January 7 2005 12:40 Hrs (IST) - World Time -

New Delhi: India has reached an agreement with Iran to buy 5 million tonnes of Liquefied Natural Gas (LNG) for 25 years.

Iran will supply the LNG at $ 1.2 plus $ 0.0625 of Brent per million British thermal unit (mBtu). The LNG supplies to India are likely to begin in 2008-09.

"We have reached an agreement. The deal will be signed in the afternoon," Iranian Oil Minister Bijan Namdar Zanghneh said in New Delhi today (Jan 7, 2005).

"We have reached a broad agreement with Iran," ONGC (Oil and Natural Gas Corporation) Chairman and Managing Director Subir Raha said.

As per the deal, Tehran will also give India 20 per cent stake in the development of its biggest onshore oil field, Yadavaran.

Chinese company Sinopec will be the operator of the field with 50 per cent stake and National Iranian Oil Company will have 30 per cent share. ONGC Videsh Ltd, the overseas arm of ONGC, will have the remaining 20 per cent stake in the oil field, which has a potential to produce 3,00,000 barrels per day.

Gail chairman Prashanto Banerjee said, "We have come to a good deal. In the present circumstances, it is a good deal."