(ET)
India’s state-owned Oil and Natural Gas Corporation (ONGC) has issued a tender to supply 750,000 standard cubic meter per day (scmd) of natural gas beginning December 26, 2019 for three years from its eastern offshore gas field in Andhra Pradesh. The pricing basis for the tender is linked to Platts LNG DES West India price assessments.
The reserve gas price for the tender would be calculated based on the simple average of daily Platts DES West India price for three months preceding the relevant month in which gas supplies are made plus a $1 per million British thermal units (MMBtu) constant, Platts said.The bids are required to be quoted as a premium over the reserve gas price, which will be published by ONGC on a monthly basis in $/MMBtu. Based on the above formula, the reserve price for November would be $5.93/MMBtu, Platts data showed.
