The Energy Ministry signed an agreement in principle in July 2006 with the Oil Ministry of Iran to purchase LNG from the Pars LNG site.The problem stemmed from the increasing construction costs of Iran's petroleum field, resulting in rising natural gas costs.
¨Our partner is expected to pass those higher costs to selling prices, so the negotiation between us is prolonged again and again,¨ he said.
PTT plans to import three million tons per year of LNG from the Pars site, a joint venture of National Iranian Oil Co., TotalFinaElf, and Petronas.
Via|Islamic Republic News Agency
LNG talks with Iran hit snag over prices
Iranian Ambassador to Bangkok said on Wednesday there will be no obstacle in export of Iranian gas to Thailand.
In reaction to press reports about a delay in LNG negotiations between Iran and PTT of Thailand, Pak Aein told reporters in Bangkok that he has not received any reliable report that Iranian gas supply negotiations with Thailand have faced any obstacle.
He further stressed that negotiations between the two sides are proceeding smoothly.
While referring to the frequent visits of PTT officials to Iran, he noted that the process of reaching agreement in energy talks are very delicate, complex requiring patience.
"The price of LNG in international markets is calculated in comparison to other energy rates mainly crude oil." He said that the project will serve the interests of both countries in the long term and negotiations will continue without any hindrance due to mutual goodwill.
Pak Aein again noted that Iran ranks the second in gas reserves and is planning to supply it to the world markets, and on the other hand, Thailand needs gas to maintain its sustainable growth so the tangible fact leads both sides to a promising future of energy cooperation.
