CGSB seeks a minimum price of $ 3.5 to $ 4 for methane

Oil and Natural Gas Corporation has issued separate tenders seeking buyers of 0.02 million standard cubic meters per day of coalbed methane (CBM)



PTI

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New Delhi

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Posted on 12.13.21, 00:42 AM


India’s largest oil and gas producer, ONGC, is seeking a minimum price of $ 3.5 to $ 4 for the natural gas it plans to produce from coal seams in Jharkhand and a field in Tripura.

Oil and Natural Gas Corporation (ONGC) has issued separate tenders seeking buyers of 0.02 million standard cubic meters per day of coal bed methane (CBM) that it plans to produce from the North Karanpura CBM block in Jharkhand and 0.1 mmscmd from the Khubal field in Tripura.

For CBM gas, he asked buyers to offer a percentage equal to or greater than 8 percent of the dated price of Brent, according to the tender document.

“The floor price will be the higher of the $ 4 per million UK thermal units or domestic gas price notified by the (government) PPAC for the period,” he said.

The PPAC notified price for the six months beginning October 1 for field gas donated to ONGC and Oil India Ltd on a nomination basis is $ 2.9 per mmBtu. ONGC complained that the gas price notified by the government is much lower than the cost.


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