India retains natural gas prices for April-Sept at $1.79/mmbtu

This is the lowest price since 2014

  
A technician is pictured inside a desalter plant of Oil and Natural Gas Corp (ONGC) on the outskirts of Ahmedabad, India, September 30, 2016.

A technician is pictured inside a desalter plant of Oil and Natural Gas Corp (ONGC) on the outskirts of Ahmedabad, India, September 30, 2016.

REUTERS/Amit Dave

NEW DELHI - India has retained the price of locally produced gas from old fields for April-September 2021 at a multi-year low of $1.79 per million metric British thermal units (mmBtu), the government said on Wednesday.

This is the lowest price since 2014, when the nation began India links price of locally produced gas from old fields to a formula tied to global benchmarks, including Henry Hub, Alberta gas, NBP and Russian gas.

It has reduced the ceiling price for gas produced from more challenging fields to $3.62 per mmBtu for April-September 2021 from $4.06 per mmBtu in the prior six-month period, the statement showed.

The prices will be applicable on a gross heat value basis.

Low natural gas prices affect the earnings of producers Oil and Natural Gas Corp Ltd and Oil India Ltd .

(Reporting by Nidhi Verma, editing by Louise Heavens) ((nidhi.verma@thomsonreuters.com; +91 11 49548031; Reuters Messaging: nidhi.verma.thomsonreuters.com@reuters.net))


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