In June 2005, Iran had agreed to supply 5 million tons (mt) of LNG for 25 years, starting 2009-10 but has not been able to liquefy gas as those technologies are controlled by the US and European companies not inclined to share such technologies because of American sanctions on Iran. Earlier, Iran had said it needed national level ratification to go through with the deal  and this is seen as a new excuse. The Oil Minister Murli Deora tried to fast-track this and the Iran-Pakistan-India deal after discussing the issue with Iranian President Mahmoud Ahmadinejad on the sidelines of the Shanghai Cooperation Organization.

Some analysts say that Iran is backing out of the deal as retribution to India’s vote against its nuclear program in the International Atomic Energy Agency (IAEA).