Business Daily from THE HINDU group of publications
Thursday, Sep 20, 2007
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Business Daily from THE HINDU group of publications Thursday, Sep 20, 2007 ePaper |
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Petroleum Corporate - Outlook Industry & Economy - Petroleum
“We hope we will get a fair deal and we expect the Government to soon take a decision on this.” Our Bureau New Delhi, Sept. 19 Consumers of natural gas may have to pay higher prices, with the State-owned ONGC pitching for market-related price for its new finds and also an increase in the Government regulated price of natural gas. Speaking to presspersons soon after the company’s 14th annual general meeting (AGM), Mr R S Sharma, Chairman and Managing Director of ONGC, said: “We are hoping price of Administered Price Mechanism (APM) gas will be raised to Rs 4.5 per cubic metre or $ 2.5 per million British thermal unit (mBtu) from Rs 3.2 per cubic metre or $ 1.97 per mBtu.” Gas under the APM system is supplied to power and fertiliser companies. “We hope we will get a fair deal as the Reliance Industries Ltd (RIL) issue has been resolved, and we expect the Government to soon take a decision on this. ONGC is hoping to get the market price for new gas produced,” he said. The Tariff Commission has in May this year recommended a price of Rs 3.6 per cubic metre, which translates into $ 2.21 per mBtu. It had also stated that the market had a capacity to pay prices higher than their recommendation. Mr Sharma said that there has been an in-principle agreement in the Government that ONGC deserves higher gas price. The company was seeking a market price, which ranges between $ 4.2 and $ 5.7 per mBtu for incremental gas production from fields given to ONGC on nomination basis. ONGC would gain Rs 2,000 crore annually in revenues if prices were raised. “The policy for areas awarded under New Exploration Licensing Policy is clear. Oil and gas from NELP blocks are guaranteed market price. But even in nomination fields we are making fresh investment to raise production or arrest the decline that sets in with age. For incremental production, we should be given market price,” he said. ONGC to improve reserve projections in KG basin ONGC likely to begin production from KG Basin in 2012 More Stories on : Petroleum | Outlook | Petroleum | Oil & Natural Gas Corporation Ltd
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