ONGC finalises price at $10.10-11.20 a unit for gas from marginal fields: Oil Minister

The price is based on Government of India's guidelines for pricing of the fuel from small and marginal fields dated July 8, 2013

India's state-run petroleum explorer Oil and Natural Gas Corp (ONGC) has finalised a price between $10.10 and $11.20 per unit for gas produced from its marginal fields, oil minister Dharmendra Pradhan has said.

"ONGC has finalised a price of $10.10 per million British thermal units (mmbtu) for gas from Gamij-GGS-2 field and a rate of $11.10 per mmBtu for Gamij-GGS-3 field, both in Gujarat," Pradhan said in written reply to a question asked in Parliament.

For the Warosan-4 field in Mehsana basin of Gujarat, it has finalized a rate of $10.50 per mmBtu. In case of Triputallu, Kaza, Mandapeta-23, Gokarnapuram and Suyyaraopeta marginal fields in Andhra Pradesh, the firm has finalised a price of $11.20 per mmBtu.

Pradhan said ONGC had fianlised the gas price through e-tendering for marginal fields based on the government's guidelines for pricing of the fuel from small and marginal fields of July 2013.

The previous UPA government had in January approved Domestic Natural Gas Pricing Guidelines which were to raise the domestic gas price to $8.4 per mmBtu.

He said the new government subsequently decided that the whole issue of gas pricing would need comprehensive re-examination. The government had last month issued new guidelines revising the price to $5.6 per mmbtu.