New Delhi, 9th May 2022: Reliance Industries Limited estimates that natural gas prices in the country may rise again in October. Gas prices are already at higher levels ahead of the rise in global energy prices, benefiting the company’s gas exploration business. Sanjay Roy, Senior Vice President (Exploration & Production) at the company during a discussion with investors said that the price cap (selling price range) for the gas from the KG-D6 block is currently or can be more than $9.92 per million British thermal units (mmBtu).
The government fixes the gas price every six months on the basis of international prices. The price of gas from old or regular fields has doubled to $6.1 mmBtu with effect from April 1. At the same time, gas from difficult areas such as the deep sea costs $ 9.92 mmBtu. At present, the next change in gas prices is to take place in October, about which Reliance Industries Limited has predicted that then gas prices may rise again.
Looking at the current international scenario, it is anticipated that the price of gas from old fields of the government-owned Oil and Natural Gas Corporation (ONGC) will increase by around USD 9 per mmBtu and gas from hard-hit areas, for this it will increase to two digits. “Going forward, it is expected that the gas price may go up to $9.92 in the first half of the financial year and then further increase in the second half,” Roy said.
“Indeed, we have also seen an increase in prices, as we know gas markets are quite tight and prices have gone up, and the impact of this we are now seeing in revenue as well as better EBITDA margins,” Rai added further.