(TH)
The recent price hike of natural gas by the Centre may result in an additional revenue of Rs.1500 crore to the state-owned ONGC Limited during the first half of the current fiscal, said global rating and research agency Moody’s.
The price paid to most of natural gas produced from domestic fields will be $3.06 per million British thermal unit (mmBtu) for six months, beginning April 1, from current USD 2.89, according to a recent notification issued by oil ministry’s Petroleum Planning and Analysis Cell. “Natural gas contributed around 45% of ONCG’s total crude oil and natural gas production volume in fiscal 2017.”
“Assuming natural gas sales volume of around 10 billion cubic meters for the first six months of fiscal 2019 for ONGC and its joint venture partners, ONGC’s natural gas revenue will increase 23% to Rs.80 billion (Rs.8000 crore) for the six months between 1 April and 30 September 2018, from a reported Rs.65 billion (Rs.500 crore) the year before”, Moody’s said in its credit outlook issued today.
The government revises domestic natural gas prices every six months using a pricing formula based on a volume-weighted annual average of prices prevailing in Henry Hub (US), National Balancing Point (UK excluding Russia), Alberta (Canada) and Russia, it added.
