With the government reducing the price of domestic natural gas to $1.79 per million British thermal units (mmBtu), state-run gas producer ONGC expects to face a loss of around Rs 7,000 crore in FY21 from its gas businesses, senior company officials said on Friday.
The average gas output cost of ONGC, which produces about 80% of the domestic natural gas, is $3.7/mmBtu, implying that there is an under-recovery of $2/mmBtu on gas production, Subhash Kumar ONGC’s director, finance, said.
