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ONGC desires minimal $3.5-4 for gas created in Jharkhand, Tripura

Business Today

India’s leading oil and also gas manufacturer ONGC is looking for a minimal cost of $3.5-4 for the gas it intends to create from coal joints in Jharkhand and also an area in Tripura. Oil and also Gas Company (ONGC) has actually provided different tenders looking for purchasers of 0.02 million typical cubic meters each day of coal-bed methane (CBM) it intends to create from the North Karanpura CBM block in Jharkhand and also 0.1 mmscmd from Khubal area in Tripura.

For the CBM gas, it asked purchasers to price quote a portion equivalent to or more than 8 percent of Dated Brent Cost, according to the tender record.

“Flooring cost will be the greater of the USD 4 per million British thermal system or Residential Gas Cost alerted by (federal government’s) PPAC through,” it stated.

The PPAC alerted cost for the 6 months starting October 1 for gas from areas offered to ONGC and also Oil India Ltd on an election basis is USD 2.9 per mmBtu.

ONGC has actually been whining that the government-notified gas cost is way listed below expense and also the firm sustains a loss of manufacturing and also sale of gas from the majority of its areas. It states its expense of manufacturing arrays from USD 4.5 to USD 9 per mmBtu for gas from various sources/fields.

For gas from Khubal area, it looked for a mark-up over the residential gas cost +(plus) $0.5 per mmBtu. The flooring or minimal cost was evaluated USD 3.5 per mmBtu, according to the tender.

Previously this year in April, ONGC had actually looked for proposals for the sale of a preliminary 2 mmscmd of gas from its KG container areas.

It had actually looked for proposals indexed to Brent petroleum for the gas from the KG-DWN-98/2 or KG-D5 block, which rests web to Dependence Industries Ltd (RIL)-BP Plc-operated KG-D6 areas in the Bay of Bengal.

Proposals were looked for at a minimum of 10.5 percent of the three-month typical Brent petroleum cost. At Brent petroleum cost of USD 70, the minimal cost pertained to $7.35 per mmBtu.

The tender was nevertheless junked as customer customers litigated versus the bidding procedure.

In the most up to date tender, ONGC has actually stated a 3 to 5-year sale period for CBM gas, with products beginning with prompt impact.

ONGC possesses 55 percent in the North Karanpura CBM block in the Ranchi area of Jharkhand. Indian Oil Company (IOC) holds 20 percent and also Prabha Power Pvt Ltd the staying 25 percent.

For Khubal area, the gas products are to start from April 2024 and also proposals have actually been sought for 3 to 5 years period.

While ONGC is looking for a cost benchmarked to Brent petroleum, RIL-BP marketed concerning 13 mmscmd of brand-new gas from KG-D6 at a cost connected to Platts JKM (Japan Korea pen) – the dissolved gas (LNG) benchmark cost evaluation for place physical freights.

That tender of RIL-BP mandated the most affordable quote at JKM minus $0.3 per mmBtu. The greatest appropriate quote was JKM plus $2.01 per mmBtu.

Likewise Check out: ONGC offers Russian Sokol crude at 22-mth high costs

Likewise Review: Aban Offshore supply strikes 5% top circuit after subsidiary bags order from ONGC

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