Iran wants the ceiling for the additional 2.5 MT per annum of LNG to be raised from $31 a barrel Brent price to $41 a barrel, officials said.
At $41 a barrel, the price of LNG comes to be $3.865 per million British thermal unit (mBtu) as against the cap price of $3.215 per mBtu agreed for the first 5 MT of LNG.
"India refused to pay a higher price for the additional volumes and with Iran not relenting, a deal for the additional LNG could not be signed when the first 5 MT was contracted on Monday," the officials said.
Iran had in-principle agreed to supply the additional LNG in January 2005, but has been insisting on a higher price.