No provision to determine price of natural gas: board

Turning down Kerala's plea for uniform pricing policy for natural gas throughout the country, the Petroleum and Natural Gas Regulatory Board today said there was no provision for determining of price of gas and it should be done through price discovery mechanism.

The government policy is that 'price discovery must take place through competitive market'. Market should not be distorted in any way, PNGRB Chairman Lalit Mansingh said addressing the Natural Gas conference here organised by the state government and Kerala state Industrial Development Corporation (KSIDC).

Gas was already being marketed at different prices in Gujarat.

Calling for uniform pricing policy for gas, state industries minister, Elamaram Kareem said price of domestic natural gas ranges from $2.71 to $5.73 per million metric British thermal unit (mmBtu). The Union government should devise a policy of pooled pricing of natural gas so that it is priced uniformally througout the country. It should not be thrown to market forces, he said.

Pointing that cartel of cement manufacturers was deciding the prices of cement, he said this should not happen in the case of gas.

Kerala must focus on development of the gas market which will in turn depend on infrastructure, Mansingh said.

The Government has approved nine major pipelines for supplying gas. The bid process of three pipelines have been completed and two more bids are being invited.

On city gas distribution network at Ernakulam, he said state government was requested to take action notifying single window clearance, Mapping of geographical areas for City Gas Distribution (GCD) networking and exemption or reducing sales tax on Natural gas.

GAIL Director (Business Development), S Venkitaraman, said pipeline infrastructure was the key to the growth of gas based industry. In India gas contributes about 9 per cent of energy mix which is expected to go up to 20 per cent by 2030.

State chief secretary, Dr P Prabhakaran, said Natural gas was important source of energy. Kerala has already staked its claim for larger allcoation from the KG basin and share from the pooled gas.

Kerala Power secretary, Paul Antony said there is need to usher in a pricing policy for gas. "Gas is what we want, but it should be at correct price," he said.