ONGC Seeks Higher Gas Price To Develop KG Basin Block

ONGC Seeks Higher Gas Price To Develop KG Basin Block

Oil & Natural Gas Corp has sought higher gas prices from the government for a block it plans to develop in the KG Basin, warning that it will otherwise have to mothball the $600 million-project, company executives said.

ONGC  has recently written to the government asking for a special pricing dispensation for the block, KG-OSN-2004/1, which doesn’t qualify as a ‘difficult field’ under the government policy unveiled last year. India offers higher gas prices to fields located in difficult terrains such as deep water or highpressure, high-temperature areas.

Price available to gas from difficult fields is $6.30 per million metric British thermal unit (mmBtu), as against $2.89 for ordinary domestic fields. Read More…

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