RIL hails Govt’s gas price hike notification
13 Jan 2014 4:13 AM IST
‘We welcome the adoption of Rangarajan Committee formula as a step in the right direction. However, gas sales under NELP have to be at competitive arms-length market prices,’ said a company spokesperson.
‘Accordingly, we hope the same momentum is maintained and, as per the PSC, gas markets are allowed to develop and transition to market price soon,’ he added.
On Friday the Petroleum & Natural Gas Ministry had notified the Domestic Natural Gas Pricing Guidelines, 2014 that will apply to all gas produced domestically, irrespective of the source, whether conventional, shale or CBM from 1 April, 2014. Gas from April will be priced at an average price of LNG imports into India and benchmark global gas rates.
This formula will be applicable till 31 March, 2019. Barclays Equity Research estimated the
price will be $8.3 per million British thermal unit in 2014-15 as against the current rate of $4.2.
‘Accordingly, we hope the same momentum is maintained and, as per the PSC, gas markets are allowed to develop and transition to market price soon,’ he added.
On Friday the Petroleum & Natural Gas Ministry had notified the Domestic Natural Gas Pricing Guidelines, 2014 that will apply to all gas produced domestically, irrespective of the source, whether conventional, shale or CBM from 1 April, 2014. Gas from April will be priced at an average price of LNG imports into India and benchmark global gas rates.
This formula will be applicable till 31 March, 2019. Barclays Equity Research estimated the
price will be $8.3 per million British thermal unit in 2014-15 as against the current rate of $4.2.
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