Natural gas producers continue to make losses as govt-dictated prices remain low: Icra
The domestic gas price notified at $1.79 per million British thermal unit for the six months beginning April 1 remains the lowest since the institution of the modified Rangarajan formula
PTI | April 3, 2021 | Updated 16:29 IST
Natural gas production remains a loss-making proposition for most fields for the Indian upstream producers as government-dictated gas price remains at its lowest level, rating agency Icra has said.
The domestic gas price notified at $1.79 per million British thermal unit for the six months beginning April 1 remains the lowest since the institution of the modified Rangarajan formula.
Natural gas production remains a loss-making proposition for most fields for the Indian upstream producers as government-dictated gas price remains at its lowest level, rating agency Icra has said. The domestic gas price notified at USD 1.79 per million British thermal unit for the six months beginning April 1 remains the lowest since the institution of the modified Rangarajan formula. Additionally, the ceiling on price for gas produced from deep water, ultra deepwater, high temperature and high-pressure fields has also been announced at USD 3.62 per mmBtu for April-September 2021-22 which is 10.8 per cent lower than the price ceiling of USD 4.06 for October-March 2020-21 which would dampen the development of such projects.
Gas producers continue to bleed as govt-dictated prices remain low, says Icra
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Last Updated: Apr 03, 2021, 02:28 PM IST
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Synopsis
The ceiling on price for gas produced from deep water, ultra deepwater, high temperature and high-pressure fields has also been announced at USD 3.62 per mmBtu for April-September 2021-22 which is 10.8 per cent lower than the price ceiling of USD 4.06 for October-March 2020-21 which would dampen the development of such projects.
Reuters
Commencement of new CNG stations in recently awarded cities is also contributing to growth.
Natural gas production remains a loss-making proposition for most fields for the Indian upstream producers as government-dictated gas price remains at its lowest level, rating agency
As per ICRA, at such low gas prices, gas production remains a loss-making proposition for most fields for the Indian upstream producers notwithstanding some decline in oil field services, equipment costs
ख़बर सुनें
भारत में ज्यादातर क्षेत्रों में प्राकृतिक गैस का उत्पादन अपस्ट्रीम उत्पादकों के लिए घाटे का सौदा बना हुआ है। रेटिंग एजेंसी इक्रा ने कहा कि सरकार द्वारा तय गैस के दाम अपने निचले स्तर पर बने हुए हैं और इससे उत्पादन पर नुकसान हो रहा है। एक अप्रैल से छह महीने के लिए घरेलू गैस का मूल्य 1.79 डॉलर प्रति इकाई (एमबीटीयू) तय किया गया है। नया रंगराजन फॉर्मूला लागू होने के बाद यह इसका