Business & Investment

India plans to raise natural gas prices with October revision

India’s gas prices are expected to rise in the October revision as energy costs rise around the world as demand recovers from Covid-19’s worst blockade.

According to Bloomberg data, the Japan-Korea marker, the benchmark for the international spot market, has jumped more than 5.6 times over the past year. JKM futures hit a record $ 27.15 per 1 million meters of British thermal units on September 21st.

ICRA Ltd. According to Fitch Ratings Ltd., global gas prices have skyrocketed in recent months due to hot summer temperatures and rising demand for gas-fired power in China. The cause was a shortage of supply from exporting countries such as Russia and Australia. Prices are unlikely to fall in the coming months as consumption increases next winter in the Northern Hemisphere.

India’s prices fell 51% from the first half of 2008 to the first half of 2010 under the administrative pricing mechanism. Securities firms such as ICICI Securities, Emkay Global and Motilal Oswal expect to increase from $ 1.79 per mmBtu to $ 3-3.15 per unit in the next six months after the semi-annual revision in October.

The price of deep sea gas is currently $ 3.62 per mmBtu. Emkay expects gas from difficult fields to reach $ 7 per mmBtu in October and $ 10.7 per mmBtu by April 2022.

In June 2021, Oil & Natural Gas Corp, the largest gas producer in Japan.teeth predict Administrative prices will rise by 50-60% in the second half of 2010.

The control price formula takes into account the quantity-weighted annual average prices of the four global benchmarks (Henry Hub, Canada, Alberta Gas, Canada, NBP, Russia, and Natural Gas, Russia) with a quarter delay. For example, for prices from October 2021 to March 2022, the weighted average from July 2020 to June 2021 is used.

Between July 1, 2020 and June 30, 2021, prices for both Henry Hub and Alberta Canada more than doubled, and UK NBP surged more than 5.6 times, according to Bloomberg data. ..

Benchmarks have so far jumped 30% in the ongoing quarter ending in September. This may support an upward revision of domestic controlled prices.

India plans to raise natural gas prices with October revision India plans to raise natural gas prices with October revision

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