Reliance Industries KG-D6’s management and raiser platform is seen off the Bay of Bengal. File
| Photo Credit: Reuters
The authorities on March 31 lower the price of pure gas produced from tough areas like deep sea KG-D6 block of Reliance Industries, marginally to $9.87 per million British thermal unit according to softening of benchmark worldwide gas costs, an official notification stated.
However, the price of gas that is used for making CNG for fuelling cars or piping to family kitchens for cooking functions will stay unchanged due to a price cap that is ready at 30% lower than market charges corresponding to that paid to Reliance.
For the six-month interval beginning April 1, the price of gas from deepsea and high-pressure, high-temperature (HPTP) areas has been lower to $9.87 per mmBtu from $9.96, oil ministry’s Petroleum Planning and Analysis Cell (PPAC) stated in a notification.
This is the third straight bi-annual discount in charges for tough fields. Price was for six months starting October 1, 2023 slashed 18 per cent to USD 9.96 per mmBtu from $12.12 for the April to September 2023 interval. Prior to that, the rate was a file $12.46 for October 2022 to March 2023.
The authorities bi-annually fixes costs of the locally-produced pure gas — which is transformed into CNG for use in cars, piped to family kitchens for cooking and used to generate electrical energy and make fertilisers.
Two completely different formulation govern charges paid for gas produced from legacy or outdated fields of nationwide oil corporations like Oil and Natural Gas Corporation (ONGC) and Oil India Ltd (OIL), and for newer fields mendacity in difficult-to-tap areas, corresponding to deepsea.
Rates are fastened on April 1 and October 1 annually.
In April final 12 months, the formulation governing legacy fields was modified and listed to 10% of the prevailing Brent crude oil price. The rate was, nevertheless, capped at $6.5 per mmBtu.
Rates for legacy fields are actually selected a month-to-month foundation. For April, the price got here to $8.38 per mmBtu however due to the cap, the producers would get solely $6.5 per mmBtu, the PPAC stated.
The price for tough space gas continues to be ruled by the outdated formulation that takes a one-year common of worldwide LNG costs and charges at some world gas hubs with a lag of 1 quarter.
International costs had fallen in 2023 and so it would translate into decrease costs for tough fields beginning October.
India is aiming to turn out to be a gas-based financial system with the share of pure gas in its major power combine focused to rise to 15% by 2030 from the present stage of round 6.3%.
