Vedanta Limited announced that it has invited bids for natural gas from its Rajasthan block at a floor price of $9.57 per mmBtu. According to the e-auction document, Vedanta intends to sell 3 million metric standard cubic metres per day (mmscmd) of gas in an auction scheduled for January 18.
The supply will be available for a year starting on April 1 from the Raageshwari gas terminal in Barmer, Rajasthan.
The floor price will be one dollar higher than the domestic formula price, which is updated every six months and currently stands at $8.57 per mmBtu. The sale price will be the lower of the Platts LNG West India marker or 15.25% of the average Brent price plus a bidder-specified premium.
The sale price would be $12.5 per mmBtu at the current Brent price of $82 per barrel and no premium. Vedanta has complete pricing control over the gas it produces from its Rajasthan block.
The majority of the country’s producing fields do not have pricing freedom, and their gas is sold at the domestic formula price. Currently, gas from difficult fields can be sold at market rates, subject to a cap of $12.46 per mmBtu.
For feedback and suggestions, write to us at editorial@iifl.com
Related Tags
Invest wise with Expert advice
IIFL Customer Care Number
(Gold/NCD/NBFC/Insurance/NPS)
1860-267-3000 / 7039-050-000
IIFL Capital Services Support WhatsApp Number
+91 9892691696
IIFL Securities Limited - Stock Broker SEBI Regn. No: INZ000164132, PMS SEBI Regn. No: INP000002213,IA SEBI Regn. No: INA000000623, SEBI RA Regn. No: INH000000248
ARN NO : 47791 (AMFI Registered Mutual Fund Distributor)
This Certificate Demonstrates That IIFL As An Organization Has Defined And Put In Place Best-Practice Information Security Processes.