New Delhi, Oct. 30: In a startling revelation, the petroleum ministry has said that the $4.20 per mmBtu price fixed by an Empowered Group of Ministers (EGoM) for gas from Reliance Industries' KG-D6 fields was only for the purpose of valuation of government share and the selling price could be higher.
In a presentation on pricing of natural gas to the Parliamentary Standing Committee on September 11, the ministry said the EGoM meeting held on September 12, 2007 suggest that the price formula approved was for valuation of the gas for the purpose of determining government share. "But we have been referring to it as selling price in ministry's communications," said the ministry. The price formula approved last year had taken the biddable parameter in the formula at zero and since the EGoM had mentioned that the "biddable character of the formula" be retained, the ministry said "the (actual) selling price could be higher." Reliance had submitted to the government a formula for determining the selling price of gas from its eastern offshore KG-D6 fields which the EGoM tweaked to "bring the price down by eight per cent." The EGoM approved the price formula according to which the minimum delivered price of gas at landfall point would be $4.20 per mmBtu for five years. EGoM, the ministry said, had decided that price discovery process for determining the rates at which the fuel would be sold, would be on arm's length basis. The price thus discovered would be uniformly applicable to all the sectors. - PTI http://www.asianage.com/presentation/leftnavigation/news/business/reliance-can-hike-kg-gas-prices,-says-centre.aspx Rich get experience. Experienced get rich. --~--~---------~--~----~------------~-------~--~----~ You received this message because you are subscribed to the Google Groups "Kences1" group. To post to this group, send email to [email protected] To unsubscribe from this group, send email to [EMAIL PROTECTED] For more options, visit this group at http://groups.google.com/group/kences1?hl=en -~----------~----~----~----~------~----~------~--~---
