India is likely to seal a LNG-for-oilfield deal with Iran this week wherein New Delhi will buy five million tonnes of liquefied natural gas from Iran in exchange of Tehran offering it a stake in an oil field.
While lower gas output led to earnings cuts, price rises with regular ramp-ups in output will lead to earnings upgrades
RasGas of Qatar is likely to sell liquefied natural gas to public sector Petronet LNG at a fixed price instead of a price indexed to crude oil.
Reliance Industries will have to provide a bank guarantee of $135 million every quarter to get a higher price for natural gas from April 1 next year.
The Cabinet Committee of Economic Affairs has approved a hike in gas prices from April 2014.
Cabinet may tweak Rangarajan formula; new price may be further delayed.
Affected firms note practical problems in getting discoms, consumers to pay for costlier supply; viability shadow on investments
If the EC decides to put on hold a gas price revision for RIL, it would set a precedent for pricing decisions of the government and policy decisions taken but undergoing procedural delays.
Reason behind for the change in his stance: gas price increase.
The withdrawal of the arbitration will now entitle the two companies to marketing and pricing freedom on the natural gas they produce from newer fields in the deep sea at an investment of Rs 40,000 crore by 2022.
Oil Min rejects RIL arbitration notice.
The department has proposed to pool prices of imported and domestically produced natural gas.
While a new formula for pricing of all domestically produced natural gas was notified on January 10 and published in Gazettee on January 17, the Election Commission last month asked the government to defer its implementation till general elections are completed.
Analysts cut upstream firms' FY15 earnings estimates, while raising those for GAIL and Gujarat Gas.
Imported Ethane will substitute its current propane imports and a portion of naphtha used for ethylene production.
RIL-BP currently produce gas from Dhirubhai-1 and 3 field and oil and gas from MA field, three of the over one-and-half dozen discoveries made in KG-D6 block
Moody's said it expects exposure to low oil prices to shave off 0.8 per cent from real GDP growth on average across oil exporting countries in 2016.
Contract does not provide for retrospective penalty for 'such' acts
Credit Suisse said $5.6 may work for Reliance Industries' R-Series gas field in the KG-D6 block but the economics for its satellite fields and NEC-25 block are uncertain.
Low gas prices and weakness in petchem margins lead to lower earnings estimates for GAIL.
Barclays said the refinery would, however, now need to find new sources for the energy for its internal uses.
After grappling with the issue for two years, the Ministry of Petroleum and Natural Gas had on November 21 ordered that the margin to be charged, over and above the gas sale price, should be fixed between the seller and buyers in all sectors other than urea and LPG.
Oil Minister M Veerappa Moily approved continuation of the existing rate of $4.2 per million British thermal units until the new government, which will be in place in May, decides on implementation of the new price formula.
The 30-share Sensex gained 321 points to end at 26,430 and the 50-share Nifty surged 100 points to end at 7,879.
The Standing Committee on Petroleum and Natural Gas in a report tabled in Parliament said the proposed formula is a simple average of two methodologies -- price of imports of LNG into India by different suppliers, and weighted average of prices of natural gas prevailing at Henry Hub in USA, National Balancing Point in London and netback import price at the well head of suppliers into Japan.
They also voiced concerns over a double penalty being sought to be imposed on them for KG-D6 fields output not matching targets.
Days after the Cabinet approved doubling of natural gas price from April next year, the Finance Ministry has written to Oil Ministry suggesting setting of a ceiling or an upper limit for the rates.
With the government's focus on environment-friendly fuel, Indraprastha Gas, Mahanagar Gas and Suzlon's earning prospects look bright
The previous United Progressive Alliance government had last year approved pricing of all forms of domestically produced gas at according to a formula suggested by a panel headed by C Rangarajan.
Government had proposed a revised investment plan for the main gas fields in the KG-D6 block.
.jpg)
Following adverse media reaction to the June 27 decision of the Cabinet Committee on Economic Affairs, the finance ministry had issued an office memorandum asking the petroleum ministry to see if there was a way to make RIL clear its gas supply backlog at the existing price.
The pricing and marketing freedom for exploitation would be capped by a ceiling price.
A nearly two-fold hike in natural gas prices will incentivise investment in the hydrocarbon sector and help reduce the energy import bill, India Inc said.
RIL has been selling gas from KG-D6 at the same price since it started production in April 2009.
BC Tripathi, who helms India's largest natural gas marketer and transporter -- GAIL, discusses last-mile connectivity to homes with Jyoti Mukul and Shine Jacob.
'Earlier compensation was less, but we have increased compensation four fold. As a result, farmers want to give up their land.' 'Infrastructure projects will create 50 lakh jobs. If today we are building 14 km of road per day, by next March, we hope to take it up to 30 km. My own hope is we can take it to 100 km per day.' 'The government's ambitious Sagarmala project aims to develop port infrastructure along the country's 7,500 km coastline. The project includes modernisation of our ports and islands, setting up of coastal economic zones, new major ports and fish harbours.'
Govt notification on $8.4 a unit price likely by month-end
The commission asks for notification to be deferred; RIL's KG-D6 pricing issue may return to Cabinet
IHS said low regulated gas prices have precipitated a supply shortfall in India, but proposed that reforms to the pricing formula could yield higher domestic production and boost India's economy.
© 2026 Rediff.com - Advertise with us - Disclaimer - Privacy Policy - Sitemap - Feedback - About us - Terms of use - Grievances