BS
State-owned Oil and Natural Gas Corporation (ONGC) is seeking a premium over the government gas price for the gas it plans to produce from coal seams in Jharkhand.
ONGC has sought bids from users for sale of 0.05 million standard cubic metres per day of gas from the North Karanpura coal-bed methane (CBM) block for three years.
Users have been asked to quote a premium they are willing to pay over and above the monthly domestic natural gas price that the Oil Ministry’s Petroleum Planning and Analysis Cell (PPAC) notifies, the tender document showed.
PPAC every month declares a price for the majority of domestically produced natural gas. This price is 10 per cent of the monthly average of the basket of crude oil that India imports. For the month of January, this price comes to USD 7.82 per million British thermal unit. This price in the ONGc tender has been marked as reserve gas price.
