ONGC to see $3 billion rise in earnings, Reliance $1.5 billion from gas price hike
State-owned Oil and Natural Gas Corporation (ONGC) 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 it produces, 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 units to $6.10, a record high. For difficult fields, such as deepsea fields of Reliance, the price has gone up by 62 per cent to $9.92 per mmBtu.
“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.
