GAIL India has differed with the $6.75 per mBtu cost requested by the Cairn India-run affiliation for the gas manufactured from the Ravva Satellite regions in the KG basin.Last month, the Cairn-ONGC-Videocon conglomerate had written to the petroleum ministry asking for a 57% increase in the Ravva Satellite field gas cost quoting stipulation in the PSC for the field.
Presently, GAIL purchases 0.9 mscm per day of gas manufactured from the Ravva Satellite fields at $4.3 on each mmBtu and has an access to match the price the Cairn-run consortium explores from the market. The latest price requested by the Ravva conglomerate is 60% more than the utmost cost of $4.2 per mmBtu sanctioned for Reliance Industries’ KG-D6 fields till the year 2014. Panna/Mukta and Tapti fields’ gas executed by an alliance driven by UK’s BG Group is sold at $5.51 on each mmBtu and from the Lakshmi regions at USD 4.75 on each mmBtu.
The production sharing agreement for Ravva specifies that the rate of natural gas manufactured from the gas region other than present discoveries for use in the country shall be valued at market fixed rates. Price amendment for the Ravva Satellite region is due since December of last year. In April, the Ravva alliance requested bids from Vemagiri Power Generation Ltd, Silkroad Sugar Pvt Ltd and GVK Power and Infrastructure Ltd for selling the 0.9 mmscmd of gas.