Ongc English news | Ongc, Latest News & Live Updates in English | English News (Latest English News) at Lokmattimes.com

New Delhi, Sep 28 CNG and piped natural gas prices could face an increase this festive season if the government implements a new floor price mechanism for gas produced from domestic fields by companies such as Oil and Natural Gas Corporation (ONGC).Sources said the petroleum ministry is considering a proposal under which domestic gas will have a floor pricing that would prevent fuel prices from crashing below an identified threshold in the current subdued market conditions and insulate oil and gas explorers like ONGC from a tariff crash.Talks are on to link gas prices with price Japan-Korea Marker, a benchmark index used to determine LNG tariff in North Asia with a discount.With JKM prices hovering over $ 5 million British thermal units (mmBtu) even with day $ 1 mmBtu discount, the Indian gas floor price under this formula will be close to $ 4 mmBtu. This is much higher than the government administered price of $ 2.39 mmBtu for the April-October, 2020 period. And if implemented, it could increase the cost for all gas consumers."Nothing has been finalised on having a gas floor price as of now. A panel in the petroleum ministry is looking at various options and the best course would be adopted that has little impact on consumers but also supports oil and gas companies with remunerative and sustainable gas prices."The average cost of gas production for the country's largest public sector oil company ONGC is about $3.7/mmBtu, much higher than the current regulated price of natural gas at $2.39/mmBtu. This is expected to fall further to about $1.9/mmBtu for the next six months beginning October 1 under the current formula, sources said.Lower gas prices is bad news for ONGC as it would mean further suppressed margins and losses. The company is set to lose close to Rs 6,000 crore on low gas prices this year, brokerages have said.Brokerages have put ONGC's FY22E gas price at US$3.6-4.2/mmbtu depending on discount to JKM price if the new floor price is implemented. With Low L NG liquefaction capacity addition ahead, JKM spot futures for FY22-FY26E are expected at US$5.2-5.8/mmbtu vs US$4.7-4.1/mmbtu in FY20-FY21E.Oil minister Dharmendra Pradhan had said earlier that India will phase out price controls in natural gas and make it market-linked soon.( With inputs from IANS )Disclaimer: This post has been auto-published from an agency feed without any modifications to the text and has not been reviewed by an editor

OngcFOLLOW

Ongc, Latest News

Senior Men's 3-Positions (3P) rifle shooter, Tokyo 2020 quota holder and double Olympian Sanjeev Rajput, continued his good form this year, winning the Men's 50m Rifle 3 Positions T4 national selection trial, to win three of the four trials held this ...

Oil and Natural Gas Corporation (ONGC) Chairman and Managing Director (CMD) Shashi Shanker, who is also the President of GCNI, has called for deeper collaborative tie-ups of all stakeholders as the country navigates through unprecedented and changing ...

Mumbai, Jan 19 The key Indian equity indices opened on a positive note on Tuesday with the BSE ... ...

New Delhi, Jan 16 Asian Games silver medallist Lakshay Sheoran of Haryana made it a clean sweep in ... ...

Mumbai, Jan 5 The key Indian equity indices declined on Tuesday with the BSE Sensex losing around 200 ... ...

To mark the birth anniversary of Netaji Subhas Chandra Bose, West Bengal will observe January 23 as 'Desh Nayak Diwas', Chief Minister Mamata Banerjee said on Monday, while demanding Centre to declare it as a national holiday. ...

The recently-announced 25 per cent reduction in domestic natural gas prices to 1.79 dollars per million British thermal units (MMBtu) from 2.39 dollars per MMBtu on a gross calorific value basis is credit negative for upstream companies like Oil and ...

New Delhi, Sep 28 CNG and piped natural gas prices could face an increase this festive season if ... ...