India lowers November APM gas price

: Natural gas
25/11/03

Indian gas consuming entities are set to buy domestic natural gas at a ceiling price of $6.55/mn Btu in November, slightly lower from $6.75/mn Btu in October under the Administered Price Mechanism (APM).

This is higher from $6.41/mn Btu in June, when the government lowered domestic natural gas prices for the first time in two years.

The oil-linked domestic natural gas price for November is also set at $6.55/mn Btu, lower from $6.96/mn Btu in October, based on India's domestic natural gas pricing mechanism that sets gas prices at 10pc of the monthly average of the Indian crude basket. But buyers make purchases at the ceiling price of APM.

APM gas applies to natural gas produced from conventional fields by state-controlled upstream companies such as ONGC and Oil India. The price is the input cost of cooking gas piped to household kitchens, compressed natural gas (CNG) for running automobiles, making fertilizers and producing electricity.

India's domestic natural gas production stood at 2.82bn m³ in September, down by 3.8pc on the year, latest oil ministry data show. Domestic output has been declining since January, when production was 3bn m³.

India's LNG imports have picked up, reaching 2.28mn t in October, up by 8pc on the month as festival demand increased, but were lower by 4pc on the year, data from market intelligence firm Kpler show. The Argus-assessed spot prices for deliveries to west India last stood at $10.80/mn Btu for first-half December on 31 October, largely unchanged from a week earlier.

By Rituparna Ghosh

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25/12/12

Japan’s energy demand falls on economic slowdown

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TotalEnergies ends Papua LNG rebid phase: Correction

25/12/12

TotalEnergies ends Papua LNG rebid phase: Correction

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Australia’s Beetaloo reaches FID on shale gas pilot

25/12/12

Australia’s Beetaloo reaches FID on shale gas pilot

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Aramco says Jafurah gas project still in commissioning

25/12/11

Aramco says Jafurah gas project still in commissioning

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German cabinet passes EU RED III

25/12/10

German cabinet passes EU RED III

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India lowers November APM gas price

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