GOVERNMENT OF INDIA

MINISTRY OF PETROLEUM AND NATURAL GAS

LOK SABHA

UNSTARRED QUESTION NO: 877

ANSWERED ON:29.07.2010

SALE PRICE OF NATURAL GAS

(a) whether the Government has given permission to Oil and Natural Gas Corporation (ONGC) to sell the gas at the rate of 5.25 US Dollar per million British Thermal Unit;

(b) if so, the details thereof; and

(c) the details of corresponding rates of selling to the consumers in the country?

ANSWER

 MINISTER OF STATE IN THE MINISTRY OF PETROLEUM & NATURAL GAS (SHRI JITIN PRASADA)

(a) to (c): Government has issued guidelines for pricing & commercial utilization of non-APM gas produced by National Oil Companies (NOCs), viz., ONGC & OIL, from their nominated blocks. Four supply zones have been identified in the Guidelines and the prices of non-APM gas sold by NOCs in these zones are as follows:-

1. Western & Northern zone (covering Maharashta, Gujarat and other States covered by HVJ/ DVPL viz., Rajasthan, M.P., U.P., Haryana & Delhi)-$5/mmbtu

2. Southern zone- KG-Basin-$4.5/mmbtu

3. Southern zone- Cauvery-Basin-$4.75/mmbtu

4. North-East- $4.2/mmbtu Further, a premium of $0.25/mmbtu for production of non-APM gas from offshore fields has been provided, as higher investment is required in development and production of offshore fields.