ONGC seeks minimum price of $ 3.5 to $4 for methane
India’s top oil and gas producer ONGC is seeking a minimum price of $3.5 to $4 for the natural gas it plans to produce from the coal seams in Jharkhand and a field in Tripura.
Oil and Natural Gas Corporation (ONGC) has issued separate tenders seeking buyers of 0.02 million standard cubic meters per day of coal-bed methane (CBM) it plans to produce from the North Karanpura CBM block in Jharkhand and 0.1 mmscmd from Khubal field in Tripura.
For the CBM gas, it asked buyers to quote a percentage equal to or higher than 8 per cent of Dated Brent Price, according to the tender document.
“Floor price shall be the higher of the $4 per million British thermal unit or Domestic Gas Price notified by (government’s) PPAC for the period,” it said.
The PPAC notified price for the six months beginning October 1 for gas from fields given to ONGC and Oil India Ltd on a nomination basis is $2.9 per mmBtu. ONGC has been complaining that the government-notified gas price is way below cost.