ONGC seeks gas price review; wants minimum price fixed at $4.2


ONGC seeks gas price review; wants minimum price fixed at $4.2

State-owned Oil and Natural Gas Corp (ONGC) has sought a review of the natural gas pricing formula as rates have dropped below cost.

India’s largest natural gas producer demanded a floor or minimum price of natural gas be fixed at USD 4.2 per million British thermal unit for the business to make economic sense.

The BJP-led government in October 2014 had evolved a new pricing formula using rates prevelant in gas surplus nations like the US, Canada and Russia to determine rates in a net importing country.

Prices have halved to USD 2.5 per mmBtu since the formula was implemented. Read More…
Credit By : Economictimes.indiatimes.com

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