Business News/ Industry / Energy/  Natural gas prices hiked to record high

The price of natural gas has been raised by 40% to a record high in line with firming up of global energy prices spurred by the Ukraine crisis.

The price of gas produced from old fields, which contribute nearly two-thirds of India’s natural gas production, has been increased to $8.57 per million British thermal unit (mmBtu) from $6.1/mmBtu, according to an order from the government’s Petroleum Planning and Analysis Cell on Friday.

The price of domestic natural gas has been more than doubled to $6.10 per million mmBtu for the six months starting 1 April from $2.90 per mmBtu in the second half of FY22. This will be applicable for the regulated gas fields of state-run Oil and Natural Gas Corporation Ltd and Oil India Ltd.

This is the third price increase since April 2019 and comes on the back of firming benchmark international prices.The government sets the price of gas every six months, on 1 April and 1 October, based on global rates.

The move tracks rising global energy prices since Russia’s invasion of Ukraine.

Simultaneously, the price of gas from deepwater, ultra deepwater and high pressure-high temperature areas such as Reliance Industries Ltd and its partner BP Plc-operated deep sea D6 block in KG basin, was hiked to $12.6 per mmBtu from $9.92.

“In accordance with Ministry of Petroleum and Natural Gas, Govt. of India, Notification No. O-22013/27/2012-ONG-D-V (Vol-II) dated 21.03.2016 for marketing including pricing freedom for gas being produced from discoveries in Deepwater, Ultra Deepwater and High Pressure-High Temperature areas, the gas price ceiling for the period 1st October, 2022 31st March, 2023 is $12.46/MMBTU on Gross Calorific Value (GCV) basis," according to the order.

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Updated: 30 Sep 2022, 11:07 PM IST
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