Oil and Natural Gas Corporation (ONGC) may take up the 20% stake of Malaysias Petronas in a US$ 2 billion liquefied natural gas project in Iran. Petronas had abandoned its 20% interest in the Pars LNG production company set up last year to build a US$ 2 billion liquefaction facility in Iran.
The project involved conversion o phase-n of the giant south Pars offshore gas field into LNG. Frances Total SA and Petronas hold 60% and 40% in the partnership looking to develop block 11. The two had also formed a production company Pars LNG, half owned by Iranian state oil firm National Iranian Oil Co, with Total holding a 30% share and Petronas 20%. While Petronas withdrew from the LNG production project, as commercial terms did not meet its investment criteria, it was still committed to the development of gas in block 11.