IGL approaches BG, Shell, GAIL for long-term commitments

04 Jan 2012

Indraprastha Gas (IGL) has approached BG, Shell, GAIL (India), and Bharat Petroleum Corporation for committed supply of natural gas to ensure the fuel is available at affordable price to its consumers.

The natural gas price in the country varies from $4.2/mmBtu to $18/mmBtu (excluding the taxes and levies). With the allotted gas from ONGC fields at administered price already fully utilised and stoppage of Reliance Industries-operated D6 gas supplies, IGL has to depend on more expensive imported gas (liquefied natural gas).

IGL, a joint venture of GAIL, Bharat Petroleum Corporation and Government of NCT of Delhi, is into the business of compressed natural gas and piped natural gas. The company sells about 3.44 mmscmd of gas, of which 2.7 mmscmd is the administered price gas, 0.7 mmscmd is imported gas from term commitments. To fill the gap the company sources spot market gas which is even more expensive.

Related Indraprastha Gas Ltd. Links:

Indraprastha Gas Share Price

494.25 1.50 (0.30%) Mar 01, 18:43
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Petronet LNG 251.35
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