New Delhi, Jan. 6 (PTI): Iran has changed its pricing formulae for liquefied natural gas (LNG) sale to India and is demanding 28 cents more per million British thermal unit (MBTU).

Iran is demanding about a dollar more than India?s offer of a fixed price of $2.4 per MBTU for importing 5 million tonnes per annum of LNG from Iran for 25 years, senior officials said.

The two sides have not been able to finalise the oil-field-for-LNG deal for more than a year now because of the deadlock over price. Petroleum minister Mani Shankar Aiyar will discuss the issue when he meets his Iranian counterpart tomorrow, they said.

The FoB price per MBTU demanded by Iranians was $0.92 plus 0.065 of annual Brent crude average ($0.92+ 0.065 per cent of Brent crude average). India?s position was $0.92 plus 0.04 of annual Brent average.

But later, Tehran hiked the price, changing their formula to $1.2 plus 0.065 of Brent. ?India has refused to accept the new price formula, though it has agreed an escalation of 2 per cent per annum on the fixed price component after the first year of operation,? officials said.

Aiyar will try and break the deadlock at tomorrow?s meeting with Iranian oil minister Bijan Namdar Zangeneh, they said. Tehran was to give India a 20 per cent share in the development of its biggest onshore oilfield, Yadavaran, as part of its plans to sell 5 million tonnes of LNG.

Iran was also offering Indian firms a stake in the Jofeir oilfield if India purchases an additional 2.5 million tonnes of LNG annually. Yadavaran has a potential to produce 300,000 barrels per day, while Jofeir can produce 30,000-40,000 barrels per day.

Energy bank

Iran has suggested establishment of an Asian bank for energy development for financing energy projects in Asia. It also said price of energy supplies from Asian producers to consumers in the region should be lower than that of other producers.

?Asian countries, especially the rapidly growing economies of the region like China and India, are in need of a long-term energy supply security. Oil producing countries, on the other hand, are concerned about the demand security. This is where an Asian interdependence may best serve the interests of all parties that are concerned about energy supply and demand,? Zangeneh said.

?The establishment of financial institutions like an Asian bank of energy development can effectively back up energy projects,? he added.

Iran supported India?s call for establishing an Asian oil market and an Asian benchmark crude (market) for oil sold in the region.

Kuwait plans

Kuwait today supported India?s demand for long-term fuel supply contracts and said it was considering investing in refining and petrochemicals sectors in Asia. ?Just as security of supply is a key issue for consuming nations, security of demand is an issue for producers such as Kuwait. Our interest is in long-term, secure, stable outlet for our hydrocarbons,? said Yosuf al-Ibrahim, special economic adviser to the Prime Minister of Kuwait.