ONGC sells 1.4 mscmd gas from KG-D5 block

Reportedly, Oil and Natural Gas Corporation Limited (ONGC) has sold 1.4 mscmd gas, a fraction of the planned output from its KG-D5 block located next to KG-D6 block in the Bay of Bengal to Torrent Gas Pune Limited, GAIL (India) Limited and Hindustan Petroleum Corporation Limited (HPCL). GAIL has sought 0.8 mscmd gas while HPCL and Torrent Gas have secured 0.42 mscmd and 0.12 mscmd gas, respectively. ONGC has sought bids from city gas operators that sell compressed natural gas (CNG) to automobiles and piped cooking gas to households, companies, liquefied petroleum gas producers, traders, etc and asked them to quote a premium, over and above the rate arrived at by calculating 14 per cent prevailing Brent oil price plus USD1 per million British thermal unit (mBtu).