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Energy Sector - 2
#98
<b>Present New Government of Iran wants to again ratify an Agreement ratified by the Previous Iranian Government – It will be the same case with Pakistan – <span style='font-size:14pt;line-height:100%'>INDIA BEWARE!</span></b>

<b><span style='font-size:21pt;line-height:100%'>Indo-Iran LNG deal delayed as govts wrangle</span></b>

<b>NEW DELHI : Indian oil companies, IOC and Gail, signatories to the $20bn India-Iran LNG deal, <span style='font-size:14pt;line-height:100%'>have legally questioned National Iranian Gas Exporting (Nigec)’s claim that work on the project cannot begin without a formal ratification of the agreement by the new regime in Iran.</span></b>

India has backed its claim with a legal opinion by the Attorney General saying an agreement signed under one regime need not be ratified by a subsequent government. There is a continuity about contractual obligations, India has argued. Similar legal opinion has been given by an independent British law firm as well.

There has been no physical progress on the project even six months after the deal was inked by Indian and Iranian oil companies. Nigec, signatory to the gas deal, has for the first time formally communicated to IOC and Gail that it cannot move forward on the project till it is approved by National Iranian Oil and the economic council.

Sources said the deal has not been ratified by the economic council although the deal has been referred to it at least two times in the past six months.

India and Iran had inked a deal to import 5m tonnes of LNG which would be used primarily for the northern region. Delay in the implementation of the deal could create a fuel crisis for the region.

The delay in the implementation comes even as both the political sides have reiterated their commitment to the project. Said a senior government official, “The Iranians have assured us of their commitment every time we have taken this up for discussion. However, there has been a stalemate on the physical progress of the project.”

Senior government officials said that Gail had written to Nigec about the delays and has urged them to set up the required committees to take the project forward.

The dithering over the LNG deal comes at a time when questions are being raised about Indo-Iran relations, following the nuclear deal with the US and India’s vote at the IAEA.

Cheers <!--emo&:beer--><img src='style_emoticons/<#EMO_DIR#>/cheers.gif' border='0' style='vertical-align:middle' alt='cheers.gif' /><!--endemo-->
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