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ONGC's 'Farzbad-B' Gas Field in Iran under Threat; Likely A Huge Blow on Gas Supply For India

Anticipating easing of Western sanctions against it, Iran is acting tough over giving state- owned ONGC the rights to develop the Farzad-B gas field in the Persian Gulf . Apparently upset over India not committing to invest in the ONGC-discovered field when Iran was under sanctions, the Persian Gulf nation remained non-committal on giving rights of the field to ONGC Videsh Ltd when a high level Indian delegation visited Tehran last month .

Source:  Economic Times

SNP Insights

Iran probable declination to give rights to ONGC for exploration from ‘Farzbad-B’ gas field may dampen India LNG supply. As the gas field has almost 12.8 trillion cubic feet of recoverable gas reserve in the field, can fulfill 26% of total LNG need of the country. So cancellation of the block may shrink gas supply for the country marginally, which may impact gas based power plant user, petro chemical companies & other end consumers negatively.