NEW DELHI: The price of natural gas produced from domestic fields crashed to their lowest at $1.79 per unit (million British thermal unit or mBtu) from $2.39 on Wednesday, clouding future ability of domestic producers such as ONGC and OIL to continue supplies but setting the stage for cheaper CNG and PNG for consumers.
\nThe six-monthly revision of prices in accordance with the government formula also lowered the price from gas from new discoveries in deep-sea and high-pressure high-temperature blocks to $4.06 per unit from $5.6, which will adversely impact the viability of east coast projects of ONGC and RIL-BP altogether worth %10 billion.
\nThis is the third straight reduction in gas prices. The price was last reduced by 26% to $2.39 in April. In contrast, LNG (liquefied natural gas) prices for October are pegged at $4-$4.5 per unit in international markets.
\nNatural gas prices are reset on April 1 and October 1 every year according to a formula benchmarked against rates in surplus markets such as the US, Canada, UK and FSU (former Soviet Union) countries with a lag of three months. The formula was introduced in 2014.<\/p>\n","protected":false},"excerpt":{"rendered":"
NEW DELHI: The price of natural gas produced from domestic fields crashed to their lowest at $1.79 per unit (million British thermal unit or mBtu) from $2.39 on Wednesday, clouding future ability of domestic producers such as ONGC and OIL to continue supplies but setting the stage for cheaper CNG and PNG for consumers. The six-monthly revision of prices in accordance with the government formula also lowered the price from gas from new discoveries in deep-sea and high-pressure high-temperature blocks to $4.06 per unit from $5.6, which will adversely impact the viability of east coast projects of ONGC and RIL-BP […]<\/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":[130,219,137],"tags":[],"class_list":["post-376293","post","type-post","status-publish","format-standard","hentry","category-newspapers","category-oil-gas-the-times-of-india","category-the-times-of-india"],"acf":[],"_links":{"self":[{"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/posts\/376293","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=376293"}],"version-history":[{"count":0,"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/posts\/376293\/revisions"}],"wp:attachment":[{"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/media?parent=376293"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/categories?post=376293"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/tags?post=376293"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}