ONGC seeks minimum USD 4 for CBM gas, U 3.5 for gas in northeast

ONGC seeks minimum USD 4 for CBM gas, U 3.5 for gas in northeast

 Synopsis ONGC is seeking a minimum price of USD 3.5-4 for the natural gas it plans to produce from coal seams in Jharkhand For the CBM gas, it asked buyers to quote a percentage equal to or higher than 8 per cent of Dated Brent Price, account document.

India’s top oil and gas producer NSE 0.14 % is seeking USD 3.5-4 for the natural gas it plans to produce from coal sea and a field in Tripura. Oil and Natural Gas Corporation (ONG separate tenders seeking buyers of 0.02 million standard cub coal-bed methane (CBM) it plans to produce from the North K in Jharkhand and 0.1 mmscmd from Khubal field in Tripura. For the CBM gas, it asked buyers to quote a percentage equal t per cent of Dated Brent Price, according to the tender docume “Floor price shall be the higher of the USD 4 per million British thermal unit or Domestic Gas Price n (government’s) PPAC for the period,” it said. The PPAC notified price for the six months beginning October 1 for gas from fields given to ONGC an nomination basis is USD 2.9 per mmBtu. ONGC has been complaining that the government-notified gas price is way below cost and the comp production and sale of natural gas from most of its fields. It says its cost of production ranges from U For gas from Khubal field, it sought a mark-up over the domestic gas price +(plus) USD 0.5 per mmBt minimum price was set at USD 3.5 per mmBtu, according to the tender. Earlier this year in April, ONGC had sought bids for the sale of an initial two mmscmd of gas from its It had sought bids indexed to Brent crude oil for the gas from the KG-DWN-98/2 or KG-D5 block, whi Reliance Industries Ltd (RIL)-BP Plc-operated KG-D6 fields in the Bay of Bengal. Bids were sought at a minimum of 10.5 per cent of the three-month average Brent crude oil price. At of USD 70, the minimum price came to USD 7.35 per mmBtu. The tender was however scrapped as consumer consumers went to court against the bidding process In the latest tender, ONGC has mentioned a 3 to 5-year sale tenure for CBM gas, with supplies comm immediate effect. ONGC owns 55 per cent in the North Karanpura CBM block in the Ranchi district of Jharkhand. Indi (IOC) holds 20 per cent and Prabha Energy Pvt Ltd the remaining 25 per cent. For Khubal field, the gas supplies are to begin from April 2024 and bids have been sought for 3 to 5 ye While ONGC is seeking a price benchmarked to Brent crude oil, RIL-BP sold about 13 mmscmd of ne a price linked to Platts JKM (Japan Korea marker) – the liquefied natural gas (LNG) benchmark price physical cargoes. That tender of RIL-BP mandated the lowest bid at JKM minus USD 0.3 per mmBtu. The highest acce plus USD 2.01 per mmBtu.

https://economictimes.indiatimes.com/industry/energy/oil-gas/ongc-seeks-minimum-usd-4-for-cbm-gas-usd-3-5-for-gas-in-northeast/printarticle/88235317.cms

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