MINISTRY OF
PETROLEUM AND NATURAL GAS
DECISIONS
REGARDING
PRICING AND
COMMERCIAL UTILIZATION OF NATURAL GAS UNDER NEW EXPLORATION LICENSING POLICY
The
supply of natural gas would be made at a selling price of US$4.2/mmbtu (for crude price greater or equal
to US$60/barrel) for all customers across all sectors, as decided in the
Empowered Group of Ministers (EGoM) meeting held
on 12.09.2007. This excludes
transportation cost, taxes, etc.
2. Keeping in view the long standing
shortage of natural gas in the country, leading to under-utilized/stranded
assets, the EGoM in its meeting held on 28.5.2008
decided about the priority sectors to which 40 mmscmd
natural gas expected to be produced from RIL's KG D6 field by March 2009 would
be supplied; the details are mentioned in Ministry’s press note dated
25.6.2008. While confirming the overall prioritization of sectors, Government
has accorded priority to Ratnagiri Power Project
Limited (RGPPL) along with fertilizer units.
It has been decided that RGPPL be supplied 1.4 mmscmd
during January to March 2009 and 2.7 mmscmd during
April to September 2009, subject to commencement of production, within the
overall allocation of power sector (18 mmscmd)
decided earlier. Further, 8.5 mmscmd would be
supplied to RGPPL after September 2009 from the production from RIL’s KG D6
field.
3. The decisions taken by the Government regarding
supply of natural gas to priority sectors, along with the modification decided in
this meeting as noted in para 2 above, would be made
applicable to the first 40 mmscmd of gas produced
from RIL’s KG D-6 field, irrespective of the date on which this production is
attained.
4. With regard to supply of 18 mmscmd earmarked for the power sector to various power
plants, it has been decided that after RGPPL, priority should be given to the
power plants in Andhra Pradesh. MOP&NG would discuss with Ministry of Power
to arrive at a mutually acceptable decision and decide supply of natural gas to
various power plants.
5. Regarding the NTPC-RIL sale price, it has
been decided that the verdict of the court should be awaited.
6. MoP&NG
would ensure that a workable Gas Sale Purchase Agreement (GSPA) is evolved for
sale of gas to be produced under NELP to consumers across the country.
7. MOP&NG would take decisions
regarding supply of natural gas to consumers by the Operator, in accordance
with the decisions of the Government and taking into account Court orders,
after consultations with the concerned Ministries and other stakeholders, with
which the Operator would comply.
8. MoP&NG
would take decisions regarding supply of natural gas to sectors/individual customers consequent to gas being available on account of
short offtake, delay and any other unforeseen
circumstances.
9. It has also been decided that
MOP&NG would facilitate finalization of GSPAs by Fertilizer Companies for
supply of gas.
10. It has been decided to give priority to
the existing natural gas-based sponge iron/steel plants after the sectors
prioritized earlier. However, the supply would be made from the production
beyond the first 40 mmscmd to be produced from RIL’s
KG-D6 field.
11. It had been earlier decided to supply 3 mmscmd for existing natural gas-based LPG plants. It has
been decided that MOP&NG would undertake a study of the cost benefit analysis
of supply of 3 mmscmd natural gas to LPG plants.
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