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
- DNA: US army's joint exercise with Indian Army and their consolation on Uri attack
- Panel discussion over PM Modi's willingness to engage in direct dialogue with Pak
- DNA: Analysis of Indus water treaty between India and Pakistan
- PM Modi slams Pakistan govt during his speech in Kozhikode
- Panel discussion over PM Modi's willingness to engage in direct dialogue with Pak - Part II
- SHOCKING VIDEO: This man was trying to take selfie with python - You won't believe what happened next!
- Donald Trump praises Hindu community's contributions to US
- Uri effect? India, Afghanistan bypass Pak to set up exclusive air corridor
- Reliance Jio impact: Vodafone offers 10 GB data at 1 GB rate
- Govt calls meet on Indus Water Treaty; Water Resources Ministry, MEA to brief PM Modi