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India Collaborating with Iran to Secure its Future Gas Import

News

Iran has agreed a $3 billion contract with a consortium of Indian companies to develop the Farzad B gas field in the Persian Gulf, according to the Mehr news agency. 

Source: ET

SNP Insight

With growing energy demand and concern for environment may result in increase India’s dependency on the natural gas which is comparatively cleaner source of energy among the fossil fuel energy sources. The gas demand in India will grow at CAGR 6.8% (as per PNGRB) in coming years and it is expected that by year 2025 natural gas may contribute 20% of India’s energy mix. Looking at this growing demand this strategic key importance towards energy security in future.  Also the falling natural gas price in International market may make this asset acquisition financially productive for these companies.

Source: SNP Infra Research