Tag: natural gas prices

India cuts natural gas price to $7.82 per mmBtu for January

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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India reduced the price of domestic natural gas on Monday, January 1, to $7.82 per mmBtu (million British thermal units), down from $8.47 per mmBtu in December. This adjustment brings the domestic natural gas price to its lowest level since July 2023.

“The revised prices will be applicable from January 1 to January 31, 2024,” the Ministry of Petroleum & Natural Gas said in a statement.

Additionally, there have been minor adjustments in the prices of 19-kg cylinders, reflecting a decrease ranging from ₹0.50 to ₹4.50.

The price of domestic natural gas is now decided based on the price of the Indian crude basket. Earlier, the price of domestic natural gas was decided based on the price of four big gas trading hubs of the world — Henry Hub, Albany, National Balancing Point (UK) and Russian gas.

The gas price is now fixed every month. Under the old formula, the price of gas was fixed every six months.

The government had formed a committee in October 2022 to decide the new formula. The government prepared the new formula following recommendations from the committee.

Meanwhile, crude futures lost over 10% in 2023 in a year of trading marked by geopolitical turmoil and concerns about the oil output levels of major producers around the world.

Brent crude on Friday, the last trading day of 2023, settled at $77.04 a barrel, down 11 cents or 0.14%.

US West Texas Intermediate crude settled at $71.65 a barrel, down 12 cents or 0.17%.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

GAIL shares gain as gas sourcing cost to come down due to fall in US LNG prices

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

Listen to the Article (6 Minutes)

GAIL shares closed higher on Wednesday as investors expect the company to benefit from a sharp drop in US natural gas prices due to a fire incident in a Freeport LNG (liquified natural gas) terminal.

The shares rose as much as 3.33 percent to Rs 151.85 on the BSE in early trade but later pared gains to close 0.37 percent higher at Rs 147. The stock has gained for the last two sessions.

Freeport LNG is estimated to be exporting around 57 million standard cubic metres of gas each day, of which, 10 percent goes to Europe. Now, due to the fire incident, Europe’s import volume has reduced, thereby leading to more gas availability in the US. Hence, the gas prices have seen a sharp drop in the US.

While partial operations may be restored in the next 90 days, full operations are unlikely to be in place until late 2022.

GAIL is likely to benefit from the lower US prices as nearly 50 percent of its imported LNG comes from the country.

The company buys LNG on contract from the international market to sell at contracted and/or spot prices in domestic as well as global markets. It has 20-year deals to buy about 5.8 million tonnes of US LNG every year.

On the back of this development, Jefferies has maintained its ‘buy’ stance on the stock with a target price of Rs 180 per share.

Jefferies added that the fire incident could prove to be a tailwind to GAIL’s trading and petrochemical profitability in the next year.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow