Mining magnate Anil Agarwal’s Vedanta Ltd on Monday invited bids for the sale of natural gas from its prolific Rajasthan block at rates equivalent to the price of imported LNG from the spot market or Brent oil price.
Cairn Oil & Gas, Vedanta’s oil and gas arm, produces about 3.5 million standard cubic metres per day (mscmd) of gas from its largely oil-bearing block in Rajasthan, the firm said in a notice. The output is being ramped up to more than 5 mscmd.
“The company invites expressions of interest (EoIs) from interested parties with proven capabilities in the natural gas business to participate in the national competitive e-auction process for the purchase of natural gas produced from our flagship block in Barmer, Rajasthan,” it said.
It invited bids for 4.5 mscmd of gas for two years from the RJ-ON-90/1 block.
The price of gas will be lower of the previous month’s average of DES West India spot liquefied natural gas prices or 14 per cent of the average Brent crude oil price.
“The sales gas price for any month shall not be lower than the government of India declared gas price,” the notice said.