Moneycontrol Bureau
Investors are lapping up shares of ONGC and Reliance as the government has notified new gas pricing formula. Shares of ONGC and Reliance jumped 2-3 percent intraday on Monday.
As per the new norms, RIL will get the benefit of the new price for gas from its existing fields like MA in the KGDWN-98/3 or KGD6 block and new/upcoming ones like R-Series and satellite in the KG Basin block and the ones in North East Coast block NEC-25.
However, for the main Dhirubhai-1 and 3 (D1&D3) gas fields in KGD6 block it will have to submit a bank guarantee to cover its liability if the charges of hoarding gas by deliberately producing less during last three years, are proved.
Late Friday, The Ministry of Petroleum and Natural Gas had notified ‘Domestic Natural Gas Pricing Guidelines, 2014’ that will apply to all natural gas produced domestically, irrespective of the source, whether conventional, shale or coal-bed methane (CBM) from April 1, 2014.
Accordingly, gas from April will be priced at an average price of liquefied natural gas (LNG) imports into India and benchmark global gas rates. This formula will be applicable for five years i.e. till March 31, 2019.
At 09:43 hrs ONGC was quoting at Rs 289.70, up Rs 5.90, or 2.08 percent while Reliance was at Rs 874.55, up Rs 17.65, or 2.06 percent on the BSE.
(With inputs from PTI)
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
Find the best of Al News in one place, specially curated for you every weekend.
Stay on top of the latest tech trends and biggest startup news.
