Iran’s National Iranian Gas Export Corporation (NIGEC) has said it will reserve the right to withdraw supply of 2.5 million tons of Liquefied Natural Gas (LNG) if the crude oil prices crosses USD $80 a barrel. Indian Oil and Gas majors say that Iran wants more open-ended contracts with uncertain clauses. Indian Oil Corporation (IOC), Gas Authority of India (GAIL), and Bharat Petroleum Corporation Limited (BPCL) negotiators returned disappointed from Iran as supply from Iran for northern states looked bleak. Iran has not ratified its aggressively negotiated deal to supply 5 million metric tons per annum (mmtpa) thereby blocking a USD 20 billion India-Iran LNG deal signed with a previous Iranian regime. IOC, GAIL, and BPCL have legally questioned NIGEC claim that they cannot go forward on the deal without political ratification saying that a deal signed by one regime need not be ratified by another. India-Iranian relations have become strained because of India’s vote in September 2005 at the International Atomic Energy Agency (IAEA) asking Iran to refrain from nuclear enrichment. Lack of Indian support to a US and European Union plan at the IAEA will essentially scuttle an Indo-US nuclear deal that proposes to supply nuclear fuel to India. India has publicly stated that it does not want to see another nuclear power emerge. The communists who support the Indian federal Government have been insisting that India rebuild its relationship with Iran and not vote against Iran. The Government is at a quandary because Iran is also becoming an increasingly unreliable supplier of LNG and oil for India.