State-owned explorer ONGC has sought marketing and pricing freedom to make natural gas viable as it plans to put one trillion cubic feet discovered in the Gulf of Kutch to commercial use.
A senior ONGC official said the PSU had asked the government to “give pricing and marketing freedom”. At the current price of $2.48 per million British thermal units (mBtu), the Kutch gas is unviable.
According to the official, if gas can be imported at $6-$7 per mBtu, domestic producers should be allowed to charge similar rates. The move will also save precious foreign exchange and help the government’s Make in India initiative.
In a communication to the oil ministry, the state-owned explorer has sought a decision at the earliest so that it can go ahead with its investment in the Kutch region. Read More…