India’s oil, gas companies seek minimum floor price for natural gas


India’s oil, gas companies seek minimum floor price for natural gas

Oil and gas exploration and production (E&P) companies in India are seeking to have the natural gas pricing regime revised to allow for the setting of a minimum rate, as a sustained fall in prices is fast eroding the economic viability of operations.

The E&P companies, in a communication with the government, have pointed out that, over the last few years, revisions of government-administered natural gas prices have resulted in prices almost halving to below the average cost of production of most producers.

The companies are asking the government to set a floor price of $4.20 per million British thermal unit (mBtu), and that this minimum price prevail over all periodic revisions in prices.

The move to secure a natural gas floor price comes just ahead of the Indian government’s marginal upward revision of the price at $2.70/mBtu, effective April 1, just a shade higher than the prevailing administered rate of $2.50/mBtu. Read More…

 

Credit By : Miningweekly.com

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