Oil and Natural Gas Corporation (ONGC) has logged a loss of Rs 4,000 crore on natural gas output in the financial year ended March 31, 2018, as the government mandated price for the fuel was less than the cost of production.
As per a new mechanism approved by the government in October 2014, the price of domestically produced natural gas is to be revised every six months -- April 1 and October 1 -- using weighted average of rates prevalent in gas surplus markets like Henry Hub (US), National Balancing Point (UK excluding Russia), Alberta (Canada) and Russia.
Using this formula, the price for April to September came to $3.06 per mmBtu as compared to $2.89 in previous six months. The company required at least $4 per million British thermal unit to break-even as compared to current gas price of $3.06 per mmBtu.
ONGC is India’s largest government-run corporation and produces about 70% of India’s crude oil and natural gas. The corporation is the biggest public sector commercial organization in India.
| Company Name | CMP |
|---|---|
| ONGC | 234.20 |
| Oil India | 417.35 |
| Jindal Drilling&Inds | 549.20 |
| Deep Industries | 454.00 |
| Asian Energy Service | 356.00 |
| View more.. | |
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