India Offers Iran $1 Billion Deal

India has offered to invest over $1 billion in Iran for the building of an LNG plant. The offer to build the liquefication plant was made by India's state-owned gas firm GAIL India Ltd.

Analysts believe the offer was made in order to cut the cost of LNG from Iran to almost the same levels as that of subsidised natural gas in India.

As part of the deal, GAIL would like to cut the gas price, including the liquefication cost, to just over $2 per million BTU so the delivered cost of the regassified LNG in India is around $3 per million BTU.