Thursday, February 13, 2014

INDIA’S PROCUREMENT PRICE OF DOMESTIC GAS IS MORE THAN THE CHINESE SELLING PRICE OF IMPORTED GAS

Who says there is no Gas Pricing Scam in India

A) China’s Increased sale price of imported gas to its industrial consumers = $0.18 per cubic meter or $4.7 per million metric British thermal unit (mmBtu)

B) India’s increased procurement price of indigenous gas from domestic producers = $0.31 per cubic meter 0r $8.2 per mmBtu

                A-B = $0.14 Cubic meter or $3.5 mmBtu
India’s existing price of $4.2 is close to the Chinese increased price of $4.7 mmBtu

According to China’s top gas producer PetroChina the new prices would increase its profitability by 20 billion yuan ($3.27 billion) every year from 2014.

· The average price of imported gas to Asia is roughly $14.59 per million British thermal units, or roughly $0.55 per cubic meter.

· China increase prices and hiked them by 15% in July 2013. India will be doing it in April 2014.

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