Petroleum Ministry note on shale gas for wider ... - GAIL (India)

Steadysupply ofLNG butat a costOURSPECIALCORRESPONDENTNew Delhi, June li:Thegovernmentis making progressin ensuring steadysupplies ofLNG (liquefied natural gas)from abroad but at high costs,oil minister Veerappa Mollysaid here today"India has already securedsupply deal of around 14 innliontonnes(mt)çer annum (ofLNG) and around 2Omt dealsare in the pipeline. But challengebeforeus is that landedcost is expected toremain highin the range of $10412 per millionBritish thermal unit, notin the range of $445, whichcustomers are used to. Makingthis LNG a cheaper comparablefuel option isa great task,"Molly said at an oil and gasmeet here.He said high oil priceswere forcing LNG importersto shift from an oil-linkedprice formula to Henry hubgas pricing, which is based onprices on the New York MercantileExchangeand IntercontinentalExchange, whichhas its headquarters in Atlanta.The pricing situation remainsvery fluid, Moily added."So how new deals will takeplace, is fast turning into awatchable game."The Centre is also lookingat the price options for gas producedin the country by firmssuch as Reliance and ONGC."The Rangarajan Committeereport (on gas pricing) isunderactive considerationand the actions for implementationofItsrecommendationshave been initiated," Mollysaid.