(a) the details of evidence-based research backing for increasing
the gas price recently by the Government;
(b) the wellhead price of natural gas and the price of Liquefied
Natural Gas (LNG) in the country;
(C) whether the higher price of gas is likely to yield higher
upstream investment in untapped hydrocarbon frontiers resulting
in higher output and reduction in import of gas; and
(d) if so the details thereof?
MINISTER OF STATE IN THE MINISTRY OF PETROLEUM & NATURAL GAS
(SMT. PANABAAKA LAKSHMI)
(a) Government has approved the gas price formula based on the Rangarajan
Committee recommendations, which will be applicable from 1st April 2014
for a period of 5 years. The details are at Annexure-I. The report of
Rangarajan Committee is available at www.eac.gov.in.
(b) Under the Production Sharing contract (PSC) regime and Coal Bed
methane (CBM) Contract regime, the wellhead price of gas is considered
to be the sales price of gas received by the Contractor within the
contract area.
The gas sales price within the contract area in the gas producing fields
under the PSC and CBM Contract Regime varies from US$ 3.5/mmbtu to
US$ 6.79/mmbtu in 2011-12The ex-terminal price of liquefied natural gas
(after regasification) being sold by GAIL to various customers, during
August, 2013 is in range of US $13.40 to US $16.40 per MMBTU. The above
price is excluding transmission tariff, marketing margin and taxes.
(c) and (d) The assurance for higher gas price is likely to encourage
accelerated exploration efforts by the Contractors which may lead to new
hydrocarbon discoveries. Further, the higher gas price may enable
development and monetization of stranded gas discoveries in
onland and offshore areas.