Oil & Natural Gas Corporation Ltd.
0.70 (0.29%) ONGC wishes to increase gas prices to produce from KG, Gulf of Kutch discoveries
Date: 27-11-2017Oil and Natural Gas Corporation (ONGC) has required to more than doubling the prices of natural gas to help bring significant discoveries in KG basin and Gulf of Kutch to production.
Gas discoveries in shallow sea off Andhra Pradesh on the east, and off Gujarat on the west are economically unviable to produce at the current government-mandated price of $2.89 per million British thermal unit.
The company wants a price of over $6 per mmBtu to help it produce the gas without suffering any losses. In the absence of a viable gas price, it will have to mothball the $1.5-billion projects.
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.