Oil and Natural Gas Corp (ONGC) has finalised sale of gas from its marginal fields at a price of $ 10.10-11.20 a unit, Petroleum Minister Dharmendra Pradhan said on Wednesday.
The price that ONGC is getting for gas from its fields in Gujarat and Andhra Pradesh is almost double of the $ 5.61 per million British thermal unit rate that the Government decided for all domestically produced gas.In a written reply to a question in Rajya Sabha, Pradhan said ONGC has fianlised gas price through e-tendering for the marginal fields based on Government of India's guidelines for pricing of the fuel from small and marginal fields dated July 8, 2013.
Accordingly, ONGC has finalised a price of $ 10.10 per mmBtu for gas from Gamij-GGS-2 field and a rate of $11.10 per mmBtu for Gamij-GGS-3 field, both in Gujarat. For the Warosan-4 field in Mehsana basin of Gujarat, it has finalised a rate of $ 10.50 per mmBtu, he said.In case of Triputallu, Kaza, Mandapeta-23, Gokarnapuram and Suyyaraopeta marginal fields in Andhra Pradesh, the firm has finalised a price of $ 11.20 per mmBtu.
Pradhan said based on the recommendations of Rangarajan Comittee Report, the previous UPA government had in January approved Domestic Natural Gas Pricing Guidelines, 2014.According to this formula the gas price came to about $ 8.4 per mmBtu.