According to a report in Iranian news agency ISNA, India and Iran will finalise a large LNG delivery contract tomorrow during a visit by Indian oil minister Mani Shankar Aiyar to Tehran.

”Talks on the sale of 5 million tonnes of liquefied natural gas (LNG) per year over a period of 25 years have been finalised and the contract is ready for signing. Negotiations are continuing to increase the volume to 7.5 million tonnes,” Iranian vice oil minister Mohammad Hadi Nejad-Hosseinian is reported as saying.

Meanwhile, the North West Shelf venture is also in talks to sell 5 million tonnes of LNG to GAIL, and Australian foreign minister Alexander Downer has said Australia would be willing to provide technical help in building a terminal for the fuel at a southern Indian port.

GAIL, which distributes 90% if the country’s nautural gas, is planning to import LNG at four ports, including a proposed terminal at Ennore in south-east India, which would be the facility closest to Australia.

While China’s first LNG terminal is not due to come online until late next year, India already has two import facilities operating.