Gas discovery: ONGC for pricing freedom – The Hindu

State-owned Oil and Natural Gas Corp. (ONGC) has sought pricing and marketing freedom to help bring to production a one-trillion cubic feet gas discovery that will open up a new sedimentary basin after over three decades.

ONGC, which has opened for commercial production six out of Indias seven producing basins, has made a significant natural gas discovery in the Gulf of Kutch of Gujarat coast that can produce about three million standard cubic meters per day, a senior company official said.

This will open up the countrys eighth sedimentary basin the first in over three decades for oil and gas production in two years.

We can bring to production the find in 23 years time, he said. The present government-mandated gas price of $2.48 per million British thermal unit does not make the discovery commercially viable. Since the find is in shallow waters, it does not qualify to get the $5.56 per mmBtu cap price set for difficult fields, the official said. The current rates of gas are uneconomic, he added.

More:

Gas discovery: ONGC for pricing freedom - The Hindu