Gas price bonanza for ONGC, RIL
State-owned Oil and Natural Gas Corporation is likely to see a $3 billion (about Rs 23,000 crore) rise in its annual earnings from the more than doubling of the price of natural gas , while Reliance Industries may get $1.5 billion (Rs 11,500 crore) more in revenue, a report has said.
The government from April 1 increased the gas price paid to producers of oil and regulated fields from $2.9 per million British thermal unit to $6.10. For difficult fields, such as the deepsea fields of Reliance, the price has gone up 62 per cent to $9.92 per mBtu.
“A three-pronged deficit in oil markets (inventory, capex and spare capacity) combined with rising domestic gas production after nearly a decade of declines sets the stage for a super-cycle in profitability,” Morgan Stanley said in a note.
