State-owned ONGC has rejected calls by potential bidders to chop the reserve worth of pure gasoline to be produced from the KG basin, set to be auctioned subsequent week, however has agreed to waive a advertising margin of $0.2 per mmBtu (metric million British thermal unit), based on tender paperwork. ONGC had final month referred to as for bids for the sale of two mmscmd (million metric commonplace cubic meter per day) of gasoline from its KG-DWN 98/2 block.
Bidders had referred to as for the reserve worth to be lowered from the quoted worth of 10.5 per cent of the three-month common of Brent crude costs, citing cheaper alternate options and excessive transportation prices for pure gasoline from the KG basin to customers which might be largely positioned nearer to the west coast of the nation which is a hub for LNG imports. Bidders had additionally sought the elimination of $0.2 per mmBtu advertising margin that ONGC had quote within the preliminary tender paperwork for provide on the market of gasoline for three-five yr phrases.
“Change in reserve gas price is not agreed, however, considering requests from various bidders, levy of marketing margin of $0.2 per MMBtu over and above contract price is removed,” the agency mentioned. Price of domestically produced pure gasoline is, nevertheless, regulated by the federal government and consumers must pay a most of $3.62 per mmBtu for gasoline bought in first half of the fiscal they usually could also be cautious of adjustments within the technique by which costs are calculated sooner or later, mentioned consultants.