Gas-consuing industries can heave a sigh of relief. The oil ministry has clarified that the new price for gas produced from domestic fields would be $5.61 as announced on Saturday.The ministry indicated that the new pricing mechanism would continue with the existing parameter for determining heating value of gas, which has a bearing on the price. “The price of $ 5.6 per unit has been worked out on NCV (net calorific value) and not on GCV (gross calorific value).
All existing gas sale purchase contracts in India at present use the net calorific value NCV for pricing against GCV generally followed overseas.
All existing gas sale purchase contracts in India at present use the net calorific value NCV for pricing against GCV generally followed overseas.
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