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Sunday, Jul 12, 2009
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Business Daily from THE HINDU group of publications Sunday, Jul 12, 2009 ePaper | Mobile/PDA Version | Audio | Blogs |
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Petroleum Corporate - Announcements Web Extras - Outlook
Richa Mishra New Delhi, July 11 Come August and GAIL will lift gas from ONGC’s marginal C-series field at a market-related price. The field is located 60 km west of Daman in the Tapti-Daman block of Mumbai Offshore. The gas will be priced at $5.5/mBtu. The two companies (GAIL and ONGC) have already entered into an understanding, Mr B.C. Tripathi, Director (Marketing), GAIL, said. He told Business Line that, “we will receive 1 mscmd (million standard cubic metres per day) of gas initially, which would be subsequently increased to 2.8-3 mscmd. The gas will be available at $5.5/mBtu (million British thermal unit).” ONGC is investing Rs 3,990 crore in the development of these fields. ONGC has been maintaining that the C-series marginal field in Mumbai offshore is viable only at a market-related price. The market related price depends on demand and currently the market price is in the $5.3-$6/mBtu range, excluding transmission charges, taxes, marketing margins and charges for services. ONGC gets market price for gas from Ravva Satellite ($4.3/mBtu, which is being reviewed) and those available from Panna-Mukta-Tapti ($ 5.7/mBtu) joint venture fields. A major portion of the gas sold by ONGC is at an administered price (Government controlled price) of about $1.85/mBtu. The public sector oil and gas producer has been seeking a revision of the administered gas price. During 2008-09, ONGC has lost about Rs 3,000 crore on selling natural gas at a controlled price. ONGC sells natural gas from fields allotted to it on nomination basis at an administered price. Mr Tripathi said that gas from ONGC would help GAIL to partially meet the deficit. Currently, GAIL is marketing 83-84 mscmd of gas and transporting 94-95 mscmd. The demand is about 150-170 mscmd. GAIL sources its gas from Panna-Mukta-Tapti joint venture fields, Ravva Satellite, Mumbai High and re-gassified liquefied natural gas (R-LNG) on term basis from Petronet LNG, and spot R-LNG. GAIL to buy gas from ONGC Mumbai offshore at market price GAIL, ONGC teaming up for Mumbai offshore gas More Stories on : Petroleum | Announcements | Outlook | GAIL (India) Ltd | Oil & Natural Gas Corporation Ltd
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