{"id":376266,"date":"2020-10-01T11:09:09","date_gmt":"2020-10-01T05:39:09","guid":{"rendered":"https:\/\/infralive.com\/web\/?p=376266"},"modified":"2020-10-01T11:31:08","modified_gmt":"2020-10-01T06:01:08","slug":"higher-gas-prices-helpful-for-ongc-but-cheaper-crude-is-a-bigger-worry","status":"publish","type":"post","link":"https:\/\/infralive.com\/web\/higher-gas-prices-helpful-for-ongc-but-cheaper-crude-is-a-bigger-worry\/","title":{"rendered":"Higher gas prices helpful for ONGC, but cheaper crude is a bigger worry"},"content":{"rendered":"<p>A recent Bloomberg report said India is considering a floor price for natural gas produced from local fields. The proposal being considered by the oil ministry pegs gas price to benchmark Japan-Korea LNG prices with a discount. This could improve realizations of state-run oil and gas producer Oil and Natural Gas Corp. Ltd (ONGC).<\/p>\n<p>Nitin Tiwari, analyst at Antique Stock Broking Ltd, said, \u201cThe move could help the company break-even on its gas production. ONGC\u2019s average cost of gas production currently is around $3.5 per mmBtu (million British thermal units). Given the current LNG prices, the implied price realization works out to $3-3.5 per mmBtu, which would be similar to what ONGC saw in FY20.&#8221;<\/p>\n<p>Note that domestic gas prices were set at $2.4 per mmBtu for April-September. They have now been lowered to $1.79 per mmBtu for the October to March period.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>A recent Bloomberg report said India is considering a floor price for natural gas produced from local fields. The proposal being considered by the oil ministry pegs gas price to benchmark Japan-Korea LNG prices with a discount. This could improve realizations of state-run oil and gas producer Oil and Natural Gas Corp. Ltd (ONGC). Nitin Tiwari, analyst at Antique Stock Broking Ltd, said, \u201cThe move could help the company break-even on its gas production. ONGC\u2019s average cost of gas production currently is around $3.5 per mmBtu (million British thermal units). Given the current LNG prices, the implied price realization works [&hellip;]<\/p>\n","protected":false},"author":44,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[139,130,187],"tags":[],"class_list":["post-376266","post","type-post","status-publish","format-standard","hentry","category-live-mint","category-newspapers","category-oil-gas-live-mint"],"acf":[],"_links":{"self":[{"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/posts\/376266","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/users\/44"}],"replies":[{"embeddable":true,"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/comments?post=376266"}],"version-history":[{"count":0,"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/posts\/376266\/revisions"}],"wp:attachment":[{"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/media?parent=376266"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/categories?post=376266"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/tags?post=376266"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}