Another possibility would involve LNG exports to India. In January 2005, Gas Authority of India Ltd. (GAIL) and the National Iranian Gas Export Corp. signed a 30-year deal with Iran for delivery of 7.5 million tons per year of LNG starting in 2009-10. One sticking point revolves around price, with Iran asking around $4 per million Btu (based on a formula calculated off of Brent crude at around $45 per Barrel), and India looking more at the $2.50 per million Btu it is paying Qatar for LNG. In the end, a compromise around $3.50 per million Btu, including shipping, was reached (although negotiations continue for additional volumes of gas above what has already been agreed upon).
In addition, NIOC offered Indian companies service contracts towards developing the Yadavaran (previously known as Kushk and Hosseinieh) and Jufeyr oilfields. Combined, Indias shares in the two Oil fields will produce 90,000 bbl/d. Iran reportedly will build three LNG plants at Assaluyeh, using South Pars gas as a feedstock. If successful, LNG exports most likely would flow to Dahej, in the western Indian state of Gujarat (and/or Cochin in the southwest), either from South Pars or North Pars. The latest news is that Indias state-owned Oil and Natural Gas Corp. (ONGC) as an option for 20 percent of Yadavaran, plus 100 percent of Jufeyr.