India's biggest importer of liquefied natural gas, Petronet LNG Ltd, reported net profit of Rs 397 crore in the third quarter ended December 31. Company‘s profit more than doubled as it handled record volumes of imported gas.
Natural gas price paid to producers, including state-owned ONGC, will be cut by 20 per cent to USD 2.5 per million British thermal unit in October, in line with a softening global trend, CMD D K Sarraf said today.
Outlining future plans, SM Ranade said that the company is working on a technology to combine gas and diesel for vehicles.
In 2014, the government had introduced a formula that is used to calculate the price of gas produced in India.
DK Sarraf, CMD, ONGC says gas price for existing production remains unchanged at USD 3.8 per mmBtu.
Oil and Natural Gas Corporation (ONGC) has asked to introduce floor price of USD 4.20 for gas price.
Natural gas prices, as per the formula approved by the government in October last year, will fall to USD 3.82 per million British thermal unit (mmBtu) on gross calorific value (GCV) basis for six months, beginning October 1, from the current USD 4.66 per mmBtu, according to the Oil Ministry.
With the US and other western powers easing sanctions against Iran, India has been in talks with Tehran to set up a gas-based urea manufacturing plant at the Chabahar port, besides developing a gas discovery ONGC had made.
While approving a new gas pricing formula based on international hub rates in October last year, the government had decided that new gas discoveries in deep-water, ultra-deep sea or high-temperature and high-pressure fields will be given a premium over and above the approved price.
A formula, based on recommendation of the Directorate General of Hydrocarbons, has been approved by Oil Minister Dharmendra Pradhan and it has now been forwarded to the Finance Ministry for vetting.
While the BJP-led government had approved an international gas hub-based formula for all of the domestically produced natural gas in November last year, small and isolated fields were exempt.
Oil Ministry's pricing cell, PPAC said domestically produced natural gas will cost USD 4.66 per million British thermal unit from April 1 to September 30 on gross clarofic value basis (GCV) as opposed to USD 5.05 per mmBtu currently.
The government had in October last year fixed natural gas price at USD 5.05 per million British thermal unit based on weighted average of international hub rates. This was on gross clarofic value (GCV) basis.
Prices of natural gas will be cut by 7.6 percent to USD 5.18/mmBtu from April 1.
The new natural gas price of USD 5.61, which is already among the lowest in Asia Pacific, is likely to drop to around USD 5 per unit in three years due to the variables included in the formula, Goldman Sachs has said.
The government maintained that the new formula, which assured a price of USD 5.6 per mmBtu was in the best interest of all parties.
Mehul Thanawala, vice-president - equity research, JM Financial is bullish on ONGC. He sees scope in Gail in the long-term but has a hold on the stock at current levels.
Emkay Global Financial Services has come out with its report on oil & gas sector. The decision of new gas pricing is favorable for both consumers and suppliers, says the report.
The government has fixed new gas price at USD 5.61 per million british thermal unit (MMBTU), increased from USD 4.2 per mmbtu earlier. This new gas price hike will be effective from November 1, 2014.
Krishna Kumar Karwa, managing director, Emkay Global Financial Services is bullish on autos and expects pharma companies to deliver strong earnings growth in Q3.
The government on Saturday has fixed new gas price at USD 5.61 per million british thermal unit (MMBTU), increased from USD 4.2 per mmbtu earlier, reports CNBC-TV18. It also reduced diesel price by Rs 3.37 per litre following decline in global oil prices in last few days.
Fertilizer stocks have been in the limelight post a CNBC-Awaaz exclusive, which states that the government has notified a New Urea Investment Policy.
Mehraboon Irani of Nirmal Bang Securities does not see the Fed hiking rates anytime soon. â€œIt is going to be many quarters away according to me,â€ he told CNBC-TV18.
On gas price hike, R Mukundan of Tata Chemicals says it will be a pass through for the company. He adds that for price hike to be positive, it needs to be accompanied with increase in supply.
Indranil Sengupta believes there are risks to 4.1% fiscal deficit target for FY15 as tax revenue projections look ambitious. But he does not think the government's borrowing programme is at risk.