GOVERNMENT OF INDIA

MINISTRY OF PETROLEUM AND NATURAL GAS

LOK SABHA

UNSTARREDQUESTION NO: 128

ANSWERED ON: 30.11.2012

SALE PRICE OF KG D GAS 

(a): the sale price fied by the Government for the gas produced from the Krishna Godavari (KG) D6 basin; 

(b): whether the said gas is being sold at a higher price by the operator than the sale price fied by the Government; 

(c): if so, the actual selling price thereof; and 

(d): the reasons for charging higher price by the operator? 

ANSWER

(a): The current NELP gas produced from the block KG-DWN-98/3 operated by Reliance Industries Ltd. (RIL) works out to be US 4.2 per Million Metric British Thermal Unit (MMBTU) 

(b) to (d): RIL charges a marketing margin of US  0.135/MMBTU in addition to the gas price approved by EGOM. The issue of determination of marketing margin on sale of natural gas to end consumers was referred to PNGRB under Section 11 

(i) of PNGRB Act, 2006. The report of PNGRB has been received in this Ministry on 22.11.2012.