Gas Pricing

Analysts are downgrading earnings projection and expect further cuts to APM allocations in the future

Company officials pointed at the impact of US election results on the Indian markets and the subsequent slump of benchmark indices

Kalpataru Projects International on Tuesday said it has secured an order from Saudi Arabia's energy major Aramco for laying 800 kilometres of gas pipeline. Kalpataru Projects International Ltd (KPIL) has received the letter of intent (LoI) from Aramco for carrying out engineering, procurement and construction works for three packages of the third expansion phase of the Master Gas System Network (MGS-3) in Saudi Arabia, KPIL said in a statement. The EPC work scope covers laying of over 800 kms of lateral gas pipeline, it said, adding that the value of the project will be confirmed upon contract execution. MGS-3 project aims to expand the existing gas network to supply gas to various industrial consumers. This expansion is expected to enhance Aramco's ability to meet the growing energy demand in Saudi Arabia and replace liquid fuel burning, contributing to Saudi Arabia's drive towards a diverse energy mix. Having roughly two decades of experience in cross-country pipelines, processin

Reliance Industries Ltd and its partner bp plc of UK have reverted to oil indexation for pricing the gas they produce from India's largest private-sector operated field in KG basin as they look to tap into the upside from the buoyant oil market. Reliance and bp in a tender have sought bids from buyers for 4 million standard cubic meters per day of gas from KG-D6 block in Bay of Bengal starting December 1, 2023. They want users to quote a price indexed to Brent crude oil price, according to the tender document. The firm had in recent previous auctions, the last being in May this year, sold gas indexed to international gas benchmark, JKM. "The consortium issued a notice inviting offer dated October 27, 2023 and invited offers from interested companies to offtake gas from the gas fields on the price basis specified in Request for Proposal (RFP), commencing from December 1, 2023 at the delivery point located in Gadimoga, Andhra Pradesh," the tender document said. It asked bidders to .

India's new gas pricing regime will offer greater downside protection for earnings of gas companies such as Oil and Natural Gas Corp (ONGC) and Oil India Ltd, S&P Ratings said on Friday. The new norms will not affect the pricing for gas produced from difficult fields that companies like Reliance Industries Ltd operate. Under the new guidelines announced on April 6, 2023, the government will set prices for domestically produced gas on a monthly basis; the rate will be 10 per cent of the average price of the Indian crude basket in the preceding month. The price will have a floor of USD 4 per million British thermal unit (mmbtu) and a ceiling of USD 6.5 per mmBtu. "We expect the new gas pricing terms to result in more fluid market price revisions," said S&P Global Ratings credit analyst Shruti Zatakia. Under the earlier regime, prices were reset semi-annually and were linked to gas prices in key international trading hubs. The pricing mechanism for gas production from deep water,

Realignment of the gas pricing mechanism by insulating the consumers from the spikes in global prices will soften prices and will provide much needed relief to the transportation sector, SIAM President Vinod Aggarwal said on Friday. In a statement, he noted that the measure will also help in re-igniting interest in CNG vehicles in India and would go a long way in promoting a clean alternative fuel in various parts of the country. "Incentivising greater production of natural gas will result in reduction in import dependence of conventional fuels, thereby enabling expansion of CNG infrastructure across the country and facilitating wider availability of CNG for vehicles," Aggarwal stated. The Union Cabinet on April 6, approved a revision in the formula for pricing of natural gas and imposed a cap or ceiling price to help cut CNG and piped cooking gas prices by up to 10 per cent. Natural gas produced from legacy or old fields, known as APM gas, will now be indexed to the price of impor

The government on Thursday amended the domestic pricing model of natural gas in line with the recommendations of the Kirit Parikh committee on gas pricing

In a competitive market, it is the consumer price that should be equalled to the cost of imported gas

New trading products could be the start of India's attempt to create a domestic price benchmark and derivatives contract market, and the tapering of the administered price regime

The S&P BSE Oil & Gas index hit a 52-week high of 20,653.57 in intra-day trade on Wednesday

In its submissions to the Oil Ministry on Wednesday, Kirit Parikh Panel has also asked the government to remove caps on gas prices in three years

The government has hiked prices of domestically produced natural gas for the October 2022-March 2023 period

As global prices soar, another committee to review gas pricing policies may find the going more challenging

India links local gas prices to a formula tied to global benchmarks, including Henry Hub, Alberta gas, NBP and Russian gas with a lag of one quarter

Indian Gas Exchange (IGX) was set up two years ago to free up pricing of domestic natural gas. In an interview with Business Standard's S Dinkar, MD & CEO Rajesh K Mediratta shares its journey so far

The company benefited from a rebound in oil prices, up about 23% during the first quarter, as fuel demand recovered after being decimated last year by lockdowns

Industry wants the move allowing free pricing for new fields to become universal to meet clean energy targets

In its first in-depth review of India's energy policies, IEA said for the share of environment-friendly fuel to rise, the government needs to ensure gas is treated on a level playing field

Earlier, RIL had told the HC that the AAP government's decision to probe the Centre's policy on gas pricing was 'peculiar' and 'absurd'

Move to disallow higher price to firms in litigation with Centre may make Reliance consider dropping arbitration case