Gas pricing under APM and non-APM regimes: Details

Jan 4, 2011: For reference purposes, comprehensive details on prices of natural gas under administered pricing mechanism (APM) and non-APM (free market) regimes. The actual prices, pricing mechanism and contracted quantities of natural gas have been provided for the following fields:

Pre-NELP fields:

Panna-Mukta: GAIL pays $5.73 per mmbtu for gas from these fields, while RRVUNL and Torrent Power pay $4.6 per mmbtu and $4.75 per mmbtu, respectively. Total contracted quantity is around 6 mmscmd.

Tapti: GAIL pays $5.57 per mmbtu for 11 mmscmd of gas from the Tapti field.

Ravva: GAIL initially paid $3.5 per mmbtu for 1 mmscmd of associated gas and $4.3 per mmbtu for 0.3 mmscmd of non-associated gas from the satellite fields in this area. Cairn has proposed a hike in the price of gas from the satellite fields to $5.73 per mmbtu, but the same has not been agreed to by the government.

Hazira: Multiple buyers pay $5.5 per million cubic feet (MCF) ($5 per mmbtu) of gas purchased from this field, which is located off the coast of Gujarat. Total contracted quantity is around 1.3 mmscmd.

CB-OS/2 (Lakshmi and Gauri fields): GGCL, GPEC and GSPC pay $4.6 per mmbtu, $4.75 per mmbtu and $5.5 per mmbtu for gas from these fields in the Cambay basin.

NELP and CBM acreages:

D1 and D3 fields (KG-D6 block): A derived price of $4.2 per mmbtu is payable for gas purchased from RIL's famous KG-D6 block.

Block CB-ONN-2000/2 (Bheema field): 0.3 mmscmd of gas is sold from this field at the rate of $6.05 per MCF ($5.5 per mmbtu).

Jharia CBM block: Gas incidentally produced by ONGC from this CBM block is sold at $5.1 per mmbtu.

Ranigunj (South) CBM block:: GEECL receives a total price of $7.64  per mmbtu for CBM gas sold from this field in West Bengal. 

Ranigunj (East) CBM block: Essar Oil, as the operator of this block, charges a total price of $5.25 per mmbtu for CBM gas.