The Hindu : Business : ONGC asks higher price for natural gas

Online edition of India's National Newspaper
Thursday, Sep 20, 2007
ePaper

Business

Business

ONGC asks higher price for natural gas

Staff Reporter

ONGC Videsh wins two oil blocks in Colombia

NEW DELHI: The Oil and Natural Gas Corporation Limited (ONGC) on Wednesday urged the Union Government to grant a 40-per cent hike in the price of natural gas.

“We are pursuing the matter with the Government, seeking a raise in the price of APM (administered price mechanism) gas from the current level of Rs. 3.20 to Rs. 4.50 a cubic metre (excluding royalty) annually to justify the huge investments we are making,” ONGC Chairman and Managing Director R. S. Sharma said. Addressing a press conference here, Mr. Sharma said the Tariff Commission had already stated that the market had the capacity to pay prices higher than their recommendation. “There has been an in-principle agreement in the Government that ONGC deserves higher gas price. The Reliance gas price issue has been resolved, and we also expect a fair deal from the Government that would take a decision on the issue soon. We hope to get the market price for new gas,” he added.

He said ONGC Videsh has won oil blocks in Colombia. “Colombia’s National Hydrocarbons Agency has awarded two oil blocks to OVL that is working in equal partnership with Colombia’s Ecopetrol, while another block has been won by a consortium of Petrobras of Brazil, OVL and Ecopetrol,” he added.

Printer friendly page
Send this article to Friends by E-Mail

Business