India-Iran Energy Relations
Strategic Depth and Geopolitical Constraints
India-Iran energy ties have been shaped by the tension between strategic complementarity and external geopolitical pressure. Iran holds the world's second-largest proven natural gas reserves and fourth-largest oil reserves — making it a natural long-term energy partner for India. Historical cooperation includes the Farzad-B gas field (discovered by ONGC Videsh, blocks awarded in 2002), Chabahar Port development (India's strategic access to Afghanistan and Central Asia bypassing Pakistan), and the Iran-Pakistan-India (IPI) gas pipeline proposal (suspended due to sanctions). US pressure has consistently limited India's ability to fully leverage the bilateral energy relationship.
- Iran's proven gas reserves: ~34 TCM (trillion cubic metres) — second only to Russia; proven oil reserves: ~157 billion barrels (fourth largest globally).
- Farzad-B gas field: ONGC Videsh's discovery; Iran subsequently awarded the development contract to domestic entities rather than ONGC, a diplomatic setback.
- Chabahar Port: India has invested approximately $500 million; provides India access to Afghanistan and Central Asian markets bypassing Pakistan. Exempt from US sanctions since 2018.
- IPI gas pipeline: India withdrew in 2009 citing commercial and geopolitical reasons; Iran-Pakistan segment partially built.
- India-Iran trade settlement mechanism during peak imports: 45% in rupees into escrow accounts in Indian banks.
● Tracked since March 25, 2026 · last seen April 15, 2026 · updates as the daily brief publishes