Sunday, June 12 2005 15:25 Hrs (IST) - World Time -

Tehran: Iran has agreed to explore possibilities of extending the 2600-km Iran-Pakistan-India pipeline to China, Petroleum Minister Mani Shankar Aiyar said.

Aiyar, who headed the Indian delegation at the ministerial level talks with Iran on natural gas imports, said, "Iran has given the green signal on our embarking on serious dialogue with Chinese on whether this pipeline could be extended to China."

During his discussions with Iranian Oil Minister Bijan Zanganeh, he also asked for extension of the quantity of Liquefied Natural Gas (LNG) Iran will export to India from 2009-10 to 7.5 million tons from 5 million tones already agreed.

Iran has refused to give concession on price for an additional 2.5 million tonnes of LNG New Delhi wants to buy over and above the 5 million tonnes per annum of LNG already agreed. On the contrary, Iranian side has proposed a hike in price.

India also wants the LNG composition to be similar to Qatar's as far as possible. Since Qatar LNG contains nearly 9.5 per cent C2/Ce outcome of all these discussions when we conclude the three-day ministerial talks on Monday," Aiyar said but clearly indicated that a Sale Purchase Agreement for 5 million tones of LNG will be signed and additional quantities if agreed may be included.

Otherwise they would be signed at another date, he added. He said that he also briefed the Iranian side about the discussions he held in Pakistan just before of his visit in Tehran on the pipeline issue. India and Pakistan had last week formed a joint committee to work out modalities and trash out technical, financial and legal issues for launching the $4.16-billion project early 2006.

Aiyar also prioritised Indian firms picking up stake in Iranian oil field development in lieu of buying LNG. Oil and Natural Gas Corporation (ONGC) Videsh Ltd, the overseas arm of ONGC, was to get 20 per cent interest equivalent to 60,000 barrels per day, in Yadavaran field and 100 per cent rights in the Jufeyr field for purchase of an additional 2.5 million tonnes.

"While we have progressed well on LNG deal, Iran is yet to assign the equity in Yadavaran or Jufery fields," he said.