In India Natural gas prices are likely to decline by 17% in April to $3.15 per unit, further straining economics of developing discoveries in deep-sea. According to the new gas pricing formula approved by the NDA Government in October 2014, gas prices are to be determined on a semi-annual basis and calculated based on a volume weighted average(VWA) of rates in gas surplus nations of the Canada , US and Russia, based on the 12 month trailing average price with a lag of three months.
Using prices benchmark for the period 1-January 2015 to 31-December 2015, gas price for the period April-2016 to September-2016 likely to be about $3.15 per million (British thermal unit) as against its present price of $3.82. A net calorific value (CV) basis the gas price is likely to be $3.50 per million British thermal unit (mmBtu) as compared to the present price of $4.24. Development of numerous existing discoveries in the blocks operated by state owned Oil and Natural Gas Corporation (ONGC) as well as Reliance Industries are dependent on remunerative price.


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