Govt fixes price of Essar Oil gas at $5.25 mmBtu

The Union government has fixed $5.25 per million British thermal unit (mmBtu), as the provisional sale price of gas Essar Oil is producing from its Raniganj Coal Bed Methance (CBM) block in West Bengal.

“We have received approval from the Ministry of Petroleum and Natural Gas for a provisional gas sale price approval,” Essar Oil CEO and Managing Director Naresh Nayyar said.

The ministry has approved a basic price of $5.25 per mmBtu plus $1 per mmBtu in transportation cost, he said. At Raniganj, Essar Oil’s first CBM block under development, 33 wells are currently producing about 35,000 standard cubic meters per day of gas.