GSPC seeks $ 14.2/mmbtu price for KG basin gas

Firm says price arrived at through arms length price discovery exercise under supervision of a neutral third party auditor

After Reliance Industries Ltd, Gujarat government firm GSPC has sought imported LNG price of USD 14.2 per mmbtu for the natural gas it plans to produce from KG basin fields by year-end.

Gujarat State Petroleum Corp (GSPC) on Friday submitted to the Oil Ministry a proposal for pricing of 5.24 million standard cubic meters per day of peak output from its Deen Dayal West (DDW) gas field in block KG-OSN-2001/3 at USD 14.2 per million British thermal unit, industry sources said.

This price, the firm said, was arrived at through an arms length price discovery exercise it carried out for over a month with supervision of a neutral third party auditor.

GSPC had on February 25 asked bidders to quote a positive or a negative number to be added to India's liquefied natural gas (LNG) import formula of 12.67 per cent of Brent crude oil plus USD 0.26 per mmbtu.

GSPC prescribed a minimum sale price of USD 8.50 per mmbtu, at floor rate of USD 65 per barrel of oil.

Sources said 37 companies put in as many as 53 bids for about 75 mmscmd.