Vedanta seeks USD9.5 per mBtu for sale of natural gas from RJ-ON-90/1 block

Reportedly, Vedanta Limited is seeking a minimum of USD9.5 per million British thermal unit (mBtu) for sale of natural gas from RJ-ON-90/1 block at Barmer in Rajasthan. It has sought bids for sale of 0.6 million standard cubic meters per day (mscmd) gas from the block in three months beginning from October 1, 2023. Besides, the bidders were asked to quote a variable P, over and above 14.5 per cent of Brent crude oil price. At current Brent price of USD84 per barrel, the bidders need to quote a price over and above the base USD12.8. However, the prices being sought by the company is about 50 per cent more than the ceiling price of USD6.5 per mBtu paid to state owned producers like Oil and Natural Gas Corporation Limited (ONGC). The RJ-ON-90/1 block was awarded in 1995 and is currently held by the joint venture of ONGC, Vedanta Limited and Cairn Energy Hydrocarbons Limited. Vedanta has developed Raageshwari gas terminal to process and deliver the natural gas produced from the block and it has been connected with the Mehsana- Bhatinda pipeline of GSPL India Gasnet Limited.