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Bonanza for Reliance, ONGC: Gas price to more than double this week

The government-dictated price for natural gas produced in the country is to be revised on April 1 and factoring in the spike in energy prices witnessed last year, the rate paid for gas produced from fields given to state-owned Oil and Natural Gas Corporation (ONGC) on nomination basis is likely to rise to $5.93 per million British thermal units from current $2.9.

March 30, 2022 / 03:02 PM IST

 
 
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In a bonanza for gas producers, Reliance Industries is set to get a record price of around $10 per MMBtu for the KG gas, while state-owned ONGC is likely to fetch more than double the rate for its Mumbai High and other fields, sources said.

The government-dictated price for natural gas produced in the country is to be revised on April 1 and factoring in the spike in energy prices witnessed last year, the rate paid for gas produced from fields given to state-owned Oil and Natural Gas Corporation (ONGC) on nomination basis is likely to rise to $5.93 per million British thermal units from current $2.9.

Simultaneously, difficult fields like the ones in Reliance and its partner bp plc operated D6 block in KG basin, are likely to get $9.9-10.1 price compared to the current rate of $6.13, two sources aware of the matter said.

These are the highest rates for administered/regulated fields (like ONGC’s Bassein field off the Mumbai coast) and free-market areas (such as the KG basin).