Great Eastern Energy Corp (GEECL) took objection to the government's move to bring all forms of natural gas under the pricing regime suggested by the Rangarajan committee formula and approved by the cabinet recently. This essentially means that the coal bed methane (CBM) gas produced from coal seams would also come under the pricing formula suggested by the Rangarajan com
Tag: pricing
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CBM output set to rise in India
In the next two years, about 6.5 million standard cubic meters per day of coal bed methane (CBM) could be produced by Essar Oil and Reliance Industries from their respective blocks. This output is enough to generate about 1,573 mw of power, reports indicate. 1 mmscmd gas can generate 242 mw power, reports indicate
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Department suggests cap on gas pricing under new regime
The department of expenditure of the union finance ministry suggested the oil ministry to fix a ceiling price for domestic natural gas under the Rangarajan formula. On June 27, the Cabinet Committee on Economic Affairs cleared the adoption of the Rangarajan pricing formula for domestic natural gas from April 2014. But while adopting this formula, the expenditure department suggested that gas producers should not be allow
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Govt sticks to formula rather than any fixed price
Even as the union cabinet recently approved the hike in domestic natural gas price to $8.4 million metric British thermal unit (mmbtu) from April 2014, the government does not stick to any fixed price, some media reports indicate. According to these reports, the government has left the market condition to fix the price based on the formula proposed by the Rangarajan committee
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Vedanta Group chief welcomes gas price hike
Anil Agarwal, Chairman of Vedanta Group told a leading media that the government's decision to hike the price of domestic natural gas would boost growth the sector. On June 27, the Cabinet Committee on Economic Affairs cleared the pricing of all domestic gas through Rangarajan formula from April 1, 2014. The price of gas as per the formula is likely to be about $8.4 per million British thermal unit as opposed to $4.2 currently
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Minister seeks special dispensation for gas to power plants
Central government must give special dispensation for allocation of natural gas to power and fertiliser sectors, union Minister of State for Power Jyotiraditya Scindia informed reporters at Toronto. Scindia asserted that in terms of pricing, either in the form of subsidies or differential pricing, government must give special dispensation for supply of gas to these two sectors, the minister said
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Ministry note justifies gas price hike
An internal note circulated by the petroleum & natural gas ministry has justified the recent decision of the union cabinet to almost double the domestic natural gas price to $8.4 per unit. The note argued that the current price of $4.2 was not viable for Ăâsustenance of the domestic production of gas and all the operators are demanding an increase in price
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Oil ministry adopts finance ministry’s terms of reference
Reports indicate that the union petroleum ministry adopted the terms of reference proposed by the finance ministry for the committee set up under former Planning Commission member Kirit S Parikh. Originally, the oil ministry had proposed that the committee be asked 'to revisit the current pricing methodology of import parity or trade parity' for petro
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Govt expects new pricing formula to boost gas output
According to an internal note prepared by the union petroleum ministry, the new gas pricing formula approved by the cabinet would enable exploration and production from around 3 tn cf (trillion cubic feet) of gas reserves. This would lead to increase in domestic supply of natural gas, the note points out. The note pointed out that investment in exploration and development plan declined in the last few y
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CCI chief warns of cascading effect from gas price hike
President of the Confederation of Indian Industry (CII), S Gopalakrishnan said the governmentĂâs move to almost double gas prices with effect from April 2014 will have a Ăâcascading effectĂâ on power tariffs. He said this while addressing a press conference. He disfavoured the dollar pricing of domestically produced natural gas by saying the following, ĂâI do not believe that the price of gas (produced in India) ought to be se