Gas Pricing game in India Finally Government rise the Gas price. Purpose price will effect from 1st November. (ONGC, Gail and RIL (Partly benefited) will get benefit) Currently Gas price at International market 3.71$ mmBtu. India Gas Price will be 5.61$ mmBtu. Thanks to cabinet that they not approved 6.17 $mmBtu. (It was purpose) India is ultra-rich nation. We are able to pay extra premium for Gas. Most of Leaders (NDA & UPA) are ultra-rich. They are very correct that extra premium price will attract new Investment in Oil & Gas Field. ONGC is higher management are not happy with 5.61$ an mmBtu. They are disappointed with new price. Gas price will add 1950 Cr RS in ONGC margin. LOLz Government will rise gas price further. They will reach to Rangarajan Price 8.40 mmBtu. It could take little longer term around 3 year. Next year 1 April they will review the price. Mean every 6 month gas price will rise. RIL Block KG- Dhirubhai -1 and 3 output will not get benefit from price rise. However other blocks are free to get benefit from price rise. KG – 1 and 3 price different will go to Gail Capital account. Until RIL has to prove that reduction of gas output is geographical. RIL has propose 80 million mmBtu. But they are giving output only 8 million mmBtu. They are saying it is happening due to geographical reason. However, case in the court. Currently gas price in India is better than International Market. 3.71$ = 5.71$ However, we are expecting that Indian Government will take price to 7.40 to 8$ within 3 year time frame. RIL will going to win the case. It is easy to prove that output reduction due to geographical. RIL & ONGC will good bet for next 3 to 4 year. But do not expect big fire work form both counter. Happy Investing……… nKhan
Posted on: Sun, 19 Oct 2014 14:16:57 +0000
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