Vedanta Invites Bids for Rajasthan Natural Gas Sale, Seeks Minimum Price of $9.5

23 Aug 2023 , 10:20 AM

Vedanta Ltd, owned by billionaire Anil Agarwal, has initiated a tender for the sale of natural gas produced from its Rajasthan block. The company is seeking a minimum price of USD 9.5 for natural gas. Vedanta has invited bids from potential users for the sale of 0.6 million standard cubic meters per day of gas.

The gas is planned to be produced from the RJ-ON-90/1 block located in the Barmer basin of Rajasthan. The production of gas from this block is anticipated to start on October 1 and continue for a period of three months. The extracted natural gas serves various purposes, including electricity generation, fertilizer production, CNG for automobiles, and household cooking.

In the tender, Vedanta has instructed users to specify a variable ‘P’ over and above 14.5% of the Brent crude oil price. The base price is calculated at USD 12.18 (14.5% of USD 84), considering the current Brent price of USD 84 per barrel. Interested users are required to quote their ‘P’ value in addition to the calculated base price.

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