Europe’s second-biggest oil company, BP Plc has demanded a market price for natural gas to enable immediate development of a huge 10 Trillion cubic feet of discoveries to help unlock up to 100-150 billion value.
In a 12-page submission to the C Rangarajan Committee, which is examining terms of future contracts for exploration of oil and gas as well as basis for gas pricing, BP advocated a market price linked to liquid fuels like diesel, naphtha and fuel oil.
This right gas pricing regime will enable immediate development of about 10 Tcf of discovered resources in the next 3-5 years by various operators, unlocking up to $100-150 billion of value at current LNG prices, BP, which is a partner of Reliance Industries in several oil and gas blocks, said.
BP said that the price so arrived will be legitimate (in line with New Exploration Licensing Policy/Production Sharing Contract), relevant (encourages investment, predictable, ensures smooth transition) and credible (reflects substitute fuels, helps index costs and provides sustainable supply for customers),” it said.
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