ID :
16223
Mon, 08/18/2008 - 10:50
Auther :
Shortlink :
https://www.oananews.org//node/16223
The shortlink copeid
Power, fertiliser cos to pay more from Jan to buy gas
January 2009, will shell out at least 30 percent more for the gas they buy from Petronet L.N.G. as the supplier RasGas ofQatar jacks up price of the fuel.
RasGas has been selling five million tons of liquefiednatural gas (L.N..G) at fixed pre-shipping cost (or F.O.B.
price) of U.S.D. 2.53 per million British thermal unit since2004.
The five year fixed price period would end in January when the price would move to a price band linked to JapaneseCrude Cocktail (J.C.C.), industry sources said.
From January, the free-on-board (F.O.B.) price would move up to U.S.D. 3.12 per mmBtu. To this, a U.S.D. 0.26 would be added as shipping cost and U.S.D. 0.169 as five percent customs duty to arrive at a delivered price of U.S.D. 3.549per mmBtu.
Petronet would then charge U.S.D. 0.55 per mmBtu as regassification charge and another U.S.D. 0.50 would go toward pipeline tariff and marketing margin. After adding sales tax the delivered price would be U.S.D. 5.5188 per mmBtu inJanuary.
But the fob price would change every month based on the moving average of J.C.C. and price would have to be calculated accordingly. The F.O.B. price in January 2010 would reach U.S.D. 4.25 per mmBtu, U.S.D. 5.59 in 2011, U.S.D. 6.91 in 2012, U.S.D. 8.24 in 2013 and U.S.D. 8.73 per mmBtu inDecember 2013.
Though the ex-terminal price of RasGas L.N.G. works out to be U.S.D. 3.86 per mmBtu now, customers are being charged U.S.D. 4.93 per mmBtu to subsidise the price of gas suppliedto the beleaguered Dabhol power plant in Maharashtra.
The U.S.D. 2.53 per mmBtu price is being pooled with U.S.D. 8.50 per mmBtu price of L.N.G. being procured for Dabhol to make the fuel affordable for the country's largestgas-based power plant.
If the same mechanism is applied post January 2009, the delivered price of L.N.G. from Petronet would be even higher,sources added.
The rise in gas price from Petronet would mean that the electricity generation cost and fertiliser manufacturing rateswould also undergo a corresponding increase.
Sources said, while the delivered price of Petronet's gas in January 2009 would be U.S.D. 5.51 per mmBtu, it would bemore than double the price of domestic gas used by O.N.G.C.
The gas produced by O.N.G.C. from fields given to it on nomination basis is priced at U.S.D. 2.1 per mmBtu. This price may go up to U.S.D. 2.4 per mmBtu if the government accepts Tariff Commission's recommendations for raising the fuelprices.
Of the free-market gas, Reliance Industries would be charging the least at U.S.D. 4.20 per mmBtu, while the Panna Mukta Tapti fields in Mumbai Offshore commands U.S.D. 5.70 permmBtu price for fuel.
RasGas has been selling five million tons of liquefiednatural gas (L.N..G) at fixed pre-shipping cost (or F.O.B.
price) of U.S.D. 2.53 per million British thermal unit since2004.
The five year fixed price period would end in January when the price would move to a price band linked to JapaneseCrude Cocktail (J.C.C.), industry sources said.
From January, the free-on-board (F.O.B.) price would move up to U.S.D. 3.12 per mmBtu. To this, a U.S.D. 0.26 would be added as shipping cost and U.S.D. 0.169 as five percent customs duty to arrive at a delivered price of U.S.D. 3.549per mmBtu.
Petronet would then charge U.S.D. 0.55 per mmBtu as regassification charge and another U.S.D. 0.50 would go toward pipeline tariff and marketing margin. After adding sales tax the delivered price would be U.S.D. 5.5188 per mmBtu inJanuary.
But the fob price would change every month based on the moving average of J.C.C. and price would have to be calculated accordingly. The F.O.B. price in January 2010 would reach U.S.D. 4.25 per mmBtu, U.S.D. 5.59 in 2011, U.S.D. 6.91 in 2012, U.S.D. 8.24 in 2013 and U.S.D. 8.73 per mmBtu inDecember 2013.
Though the ex-terminal price of RasGas L.N.G. works out to be U.S.D. 3.86 per mmBtu now, customers are being charged U.S.D. 4.93 per mmBtu to subsidise the price of gas suppliedto the beleaguered Dabhol power plant in Maharashtra.
The U.S.D. 2.53 per mmBtu price is being pooled with U.S.D. 8.50 per mmBtu price of L.N.G. being procured for Dabhol to make the fuel affordable for the country's largestgas-based power plant.
If the same mechanism is applied post January 2009, the delivered price of L.N.G. from Petronet would be even higher,sources added.
The rise in gas price from Petronet would mean that the electricity generation cost and fertiliser manufacturing rateswould also undergo a corresponding increase.
Sources said, while the delivered price of Petronet's gas in January 2009 would be U.S.D. 5.51 per mmBtu, it would bemore than double the price of domestic gas used by O.N.G.C.
The gas produced by O.N.G.C. from fields given to it on nomination basis is priced at U.S.D. 2.1 per mmBtu. This price may go up to U.S.D. 2.4 per mmBtu if the government accepts Tariff Commission's recommendations for raising the fuelprices.
Of the free-market gas, Reliance Industries would be charging the least at U.S.D. 4.20 per mmBtu, while the Panna Mukta Tapti fields in Mumbai Offshore commands U.S.D. 5.70 permmBtu price for fuel.
