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Natural Gas Price
At present, there are broadly two pricing regimes for gas in the
country gas pricedunder APM and non-APM or free market gas. The
price of APM gas is fixed by theGovernment. As regards non-APM/free
market gas, this could also be broadly sub-
divided into two categories, namely, imported LNG and
domestically produced gas fromJV fields. While the price of LNG
imported under term contracts is governed by the SPAbetween the LNG
seller and the buyer, the spot cargoes are purchased on
mutuallyagreeable commercial terms. As regards JV gas, its pricing
is governed in terms of thePSC provisions.
Price of APM natural gas produced by Nationanal Oil Companies
w.e.f. 01.06.2010
MoP&NG, w.e.f June 1, has revised the natural gas pricing
mechanism as under
1.Price of APM natural gas produced by National Oil Companies
has been fixed atUS$ 4.2/ mmbtu less royalty. Hence the APM price
inclusive of royalty wouldbe US$ 4.2/mmbtu. Other features are
:
The Price on NCV basis. The price would be converted to Rs/mscm
( @10,000 Kal/scm) at the RBI
reference exchange rate of the month previous to the month
during whichsupply of AP gas is made. The Price would be excluding
cess,transportation charges, marketing margin/service charge, taxes
etc.
2. North Eastern customers would get a discount of 40% on NCV
basis. Differencewould be paid to ONGC & OIL through Government
budget.
3. Marketing margin of Rs. 200/mscm would be payable by the
customers to thecompany marketing the gas produced by NOCs.
4. ONGC and OIL would have the freedom to sell any production
from new fields intheir nominated blocks at non-APM rate
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Gas pipeline networks in India
1. Existing Pipeline NetworkThere are presently three major
pipeline entities in gas transportation across the country
i.e. GAIL, RGTIL and GSPCL. GAIL is operating HVJ & DVPL
trunk pipeline toevacuate APM , JV & R-LNG from ONGC and PLL,
consisting about 7000 km (about67%) being owned & operated by
GAIL. RGTIL is operating 1375 km East Westpipeline (EWPL) to
evacuate gas from KG-D6 gas in Andhra Pradesh. This pipelinepasses
through Andhra Pradesh, Maharashtra and Gujarat and integrated with
GAILs &GSPL network to reach Northern and Western India market.
GSPL is mainly focused inthe state of Gujarat. In addition GAIL
also operates regional gas pipeline network acrossIndia mainly in
Uran, K.G.Basin, South Gujarat. The spread of pipeline network
ofdifferent transporter is given as under:
Transporter (in KM) (in %)
1 GAIL 7241 67%2 RGTIL 1375 13%
3 GSPL 1660 15%
4 AGCL/OIL* 500 5%
Total 10776 100%* approximately
The natural gas is primarily sourced from KG-D6,Mumbai offshore,
Cambay Basin,Ravva Offshore, KG Basin, Cauvery basin and Imported
LNG.
2. The details of major pipeline trunk pipe line network
existing, planned and underexecution are attached :
