On March 7 and 8, Reliance Industries Ltd and Hindustan Oil Exploration Company (HOEC) sold natural gas to companies like Gujarat State Petroleum Corp (GSPC) and GAIL. The price discovery in both these bids, around $22 per million British thermal unit (mBtu), is the highest ever in India for domestic natural gas supply.
GAIL India said it will cut the gas supplies by 20% due to the prevailing scenario. RIL will supply gas from its coal bed methane fields while HOEC gas will be sourced from HOEC B-80 field. “Had it not been for the war between Russia and Ukraine, these deals would have been capped at $15 per mBtu”.
Gujarat Gas, the largest CGD company in terms of volumes, wrote to ceramic companies in Morbi to put constrain on their consumption. Ceramic firms will have to pay for 20% of their total consumption at spot prices. Asian spot LNG prices jumped $3 per MMBtu (week on week) to $40.5/mmbtu for Apr’22 delivery.
For Detailed News: Hindustan Times
