Gujarat govt company, GSPC, takes cue from Reliance Industries, seeks imported LNG price for KG basin gas

Price of gas as per Rangarajan panel recommendation would come to USD 8-8.5 per mmBtu.

Great Eastern Energy Corp (GEECL) is selling CBM produced from its Raniganj block in West Bengal at USD 6.79 per mmBtu, while domestically produced natural gas is priced at USD 4.2 to USD 5.73 per mmBtu.

RIL had sought a marketing margin of USD 0.15 per mmBtu from CBM users, even though its USD 0.135 per mmBtu marketing margin charged on KG-D6 gas has been sent to oil regulator PNGRB for review.

Sources said the Oil Ministry was reluctant to approve the price sought by RIL as nowhere in the world is domestic gas priced at LNG rates.

RasGas of Qatar prices the 7.5 million tonnes a year (about 30 mmscmd) of gas it sells to Petronet LNG Ltd at 12.67 per cent of JCC. Another USD 0.26 per mmBtu is the cost it takes for shipping the gas cooled to turn it into liquid (called LNG) in cryogenic ships.

RIL adopted this formula and has sought pricing of its CBM as well as KG-D6 gas in line with it.