RIL paying $9 for buying spot LNG
New Delhi: Reliance Industries, the operator
of India`s biggest gas field, on Wednesday said it is paying over USD
nine for buying liquefied natural gas from spot market as the
government has not allowed use of fuel pumped by it for
captive use, a company official said.
"We are forced to pay more than what our gas would have
cost us," RIL President of Oil and Gas Business PMS Prasad
told reporters here.
RIL buys about 10 million standard cubic meters per day
of regassified-LNG from Petronet LNG Ltd and Royal Dutch/Shell
- the nation`s only two LNG importers, for use in its
refineries and petrochemical plants.
"We need about 15 mmscmd (of gas). We get some gas from
Panna/Mukta and Tapti fields (in western offshore) and the
rest has to be met from spot LNG purchase," he said.
Against the delivered price of RIL`s eastern offshore
KG-D6 field gas of USD 6.5 per mmBtu at its plants in Gujarat,
the spot-LNG is costing it USD 8.5-9 per mmBtu, he said.
The government has so far named customers in fertiliser,
power, city gas, LPG and steel sector for the first 40 mmscmd
of KG-D6 output and is yet to notify new users despite the
production capacity crossing 65 mmscmd.
The company cannot sell gas to any of the users,
including its own refineries, which are starved of fuel,
unless allocation is approved by the government.
The government yesterday formed a ministerial panel led
by Finance Minister Pranab Mukherjee to allocate natural gas
from the company`s field to new users.
RIL`s eastern offshore KG-D6 field gas is priced at USD
4.205 per million British thermal unit on net calorific value
(NCV) basis. On gross calorific value (GCF) - the basis used
to price LNG - the KG-D6 gas at landfall point in Kakinada in
Andhra Pradesh will cost just USD 3.75 per mmBtu.
The delivered price of KG-D6 gas to RIL`s plants in
Gujarat is USD 6.5 per mmBtu while the same for R-LNG is USD
8.5-9 per mmBtu (on NCV basis).
"This month we are paying over USD 9 per mmBtu for the
spot-LNG," Prasad said.
RIL had last month bought two spot cargoes of LNG (each
comprising of 80 million cubic meters) from Petronet at USD
6.3-6.2 per mmBtu ex-terminal price (delivered price after
adding taxes and transportation of USD 7.8-8 per mmBtu). In
October, spot-LNG prices have gone up and RIL has not
contracted any volumes from Petronet but may be taking gas
from Shell`s Hazira terminal.
Besides Mukherjee, the Empowered Group of Ministers
(EGoM) would include as members Oil Minister Murli Deora,
Power Minister Sushil Kumar Shinde, Fertiliser Minister M K
Alagiri, Law Minister Veerappa Moily and Planning Commission
Deputy Chairman Montek Singh Ahluwalia.
More from India
More from World
More from Sports
More from Entertaiment
- One year of Modi govt: PM promises to fulfil aspirations
- Watch: Mumbai cops find new secret agents in housewives!
- Hundreds die as heat wave continues in India
- 2G scam: Ex-TRAI chief alleges Manmohan Singh had warned him to cooperate
- Pranab Mukherjee defends Bofors scam, says it was just a media trial
- Salman Khan attends sister Arpita's wedding reception in Mandi
- Zee Media's mega survey on Modi govt
- Zee Media Exclusive: Vidya Balan chats about 'Hamari Adhuri Kahani'
- Para athlete Deepa Malik complains of callous service by Air India
- Smriti Irani visits Amethi, promises to pay insurance money to 25,000 women
- One year of Modi govt: Amit Shah addresses media
- I eat beef, can somebody stop me?: Kiren Rijiju hits back at Naqvi
- Delhi: Visually impaired boy scores 91.4% in CBSE 12th Board exams
- MP: 14-year-old boy works as bonded labour since 2009
- BBV: What challenges lie ahead of Modi govt?
- One year of NDA govt: PM Modi writes open letter to nation, promises to transform India
- Arpita-Aayush wedding reception: Salman Khan spreads love in Mandi, says `hum aapke hain`
- World optimistic about India: PM Narendra Modi on 1 year of NDA govt
- MSBSHSE Class 12th HSC results 2015 to be declared at 1pm tomorrow
- Bharatiya Janata Party lacks majority for Ram Temple, Article 370: Amit Shah
- Rahul Gandhi takes a dig at one year of Modi govt, wishes 'happy birthday' to 'suit-boot ki sarkar'
- CBSE Class 10 Board Result 2015 (cbse.nic.in, cbseresults.nic.in) postponed?
- AAP govt moves resolution against MHA notification: As it happened
- Check mahresult.nic.in for MSBSHSE Maharashtra Class 12 HSC Result 2015
- CBSE Class 10 Board Result 2015 to be announced on May 28
- Maharashtra MSBSHSE HSC Result 2015 on mahresult.nic.in
- Heatwave kills 90 more in Andhra, Telangana; toll crosses 800
- Gujjars adamant on holding talks in Bayana; rail tracks remain blocked
- CBSE 10th result to be declared tomorrow
- I was misquoted, says Kiren Rijiju on 'beef' remark