Iran seeks higher price for more LPG

Iran has sought a 20 per cent increase in price for the additional 2.5 million tonnes per annum of liquefied natural gas that India wants to buy, over and above the five million tonnes contracted earlier this week.

Iran wants the ceiling for the additional 2.5 MT per annum of LNG to be raised from $31 a barrel Brent price to $41 a barrel, officials said.

At $41 a barrel, the price of LNG comes to be $3.865 per million British thermal unit (mBtu) as against the cap price of $3.215 per mBtu agreed for the first 5 MT of LNG.

"India refused to pay a higher price for the additional volumes and with Iran not relenting, a deal for the additional LNG could not be signed when the first 5 MT was contracted on Monday," the officials said.

Iran had in-principle agreed to supply the additional LNG in January 2005, but has been insisting on a higher price.