BackIndia keeps domestic natural gas price unchanged at $1.79 per mmBtu for Apr-Sep
Gas comprises about 6.2% of India’s primary energy mix, far behind the global average of 24%. The Centre plans to increase this to 15% by 2030. India’s gas demand is expected to be driven by fertilizer, power, city gas distribution, and steel sectors
PremiumNEW DELHI: India has kept domestic natural gas prices unchanged at $1.79 per million British thermal units (mmBtu) for the first six months of the current financial year, under the domestic gas price regime introduced in 2014.
The ceiling on prices of gas from difficult fields such as deep water, ultra-deep water, and high pressure-high temperature areas for April-September has been reduced to $3.62 per mmBtu from $4.06 per mmBtu.
Also Read | Inside Mumbai’s new extortion economy
The bi-annual price revision fixes the domestic price at which natural gas is supplied by explorers such as Oil and Natural Gas Corp. Ltd (ONGC) and Oil India Ltd (OIL) to urea manufacturers, power generation firms, and compressed natural gas (CNG) and piped natural gas (PNG) firms.
The new price will be effective from 1 April to 30 September and was notified by the Director General of Petroleum Planning and Analysis Cell (PPAC) Praveen M. Khanooja.
The price is based on gross calorific value (GCV). Calorific value is heat value obtained from one volume unit of gas. While net calorific value (NCV) doesn’t take into account the latent heat of vaporisation, GCV includes all the heat released by the fuel.
In October 2014, the National Democratic Alliance government announced a new gas pricing formula using the weighted average of prices in three major international trading hubs - the US Henry Hub, the UK National Balancing Point, and Japan’s custom-cleared rate.
Gas comprises about 6.2% of India’s primary energy mix, far behind the global average of 24%. The government plans to increase this share to 15% by 2030. India’s gas demand is expected to be driven by fertilizer, power, city gas distribution, and steel sectors.
Milestone Alert!Livemint tops charts as the fastest growing news website in the world 🌏 Click here to know more.
