Natural gas price cut by 26% to $2.39 per mBtu
The price of domestically produced natural gas was cut by 26 per cent to $2.39 per million British thermal units (mBtu) for the April to September 2020 period.
This is down from the $3.23 a mBtu sale price allowed for locally produced gas in the country during October 2019 to March 2020 period.
The new price is the lowest gas price since 2014, when the Ministry of Petroleum and Natural Gas linked domestic prices to the modified Rangarajan formula.
According to the formula, the domestic gas price is based on the weighted average price of four global benchmarks — the US-based Henry Hub, Canada-based Alberta gas, the UK-based NBP, and Russian gas.
