Indian Firm Interested in Iran Crude Storage Venture

A private Indian company is looking to invest in Iran's infrastructure for the storage of crude oil and byproducts.

India's IMC Group is interested in the construction and maintenance of depots for petroleum products at Iran's southern terminals in the Persian Gulf, the news portal of the National Iranian Oil Company reported on Monday.

Based in Chennai in eastern India, IMC is engaged in the development, construction, operation and management of port-based infrastructure projects. It is also a trader of agricultural products and fuels.

India has been engaged in talks over developing gas liquefaction and export facilities south of Iran to meet its demand at home. Iran exports all of its gas through pipelines, lacking the equipment to produce liquefied natural gas that is exported via tanker ships.

ONGC Videsh Ltd, the overseas arm of state-owned Oil and Natural Gas Corp, has offered to invest about $5.8 billion in developing the Farzad-B Gas Field in the Persian Gulf and another $5 billion to build a liquefied natural gas export facility.

But the investment plan is in doubt, as the two countries are at loggerheads over awarding the offshore Iranian gas project, with Indian refiners having cut back crude oil imports from Iran in retaliation. But the world's third biggest oil consumer continues to remain a key buyer of Iranian crude. India shipped in about 467,000 barrels a day of crude from Iran in October, second to China with 685,150 barrels.

Iran, the third-biggest producer of the Organization of Petroleum Exporting Countries, aims to build new oil storage and loading infrastructure along its southern coast. The bulk of Iran's crude exports are made from Kharg, an island terminal off the Persian Gulf.

Iran pumps close to 3.8 million barrels of crude oil and condensate, a type of ultra light crude, with export at more than 2.5 million bpd.