1 / 10

Natural Gas Pricing – A New Paradigm?

Natural Gas Pricing – A New Paradigm?. Challenges Before LNG Players. Competitiveness with Domestic Gas. (Approx). Price under APM - - - - - - - - - - - - - - - - - - - - - - - 3.00$/MMBtu JV Price (Panna Mukta) - - - - - - - - - - - - - - - - - - 3.49 $/MMBtu

fritzi
Download Presentation

Natural Gas Pricing – A New Paradigm?

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Natural Gas Pricing – A New Paradigm? Challenges Before LNG Players Infraline Energy Research & Information Services

  2. Competitiveness with Domestic Gas (Approx) Price under APM - - - - - - - - - - - - - - - - - - - - - - - 3.00$/MMBtu JV Price (Panna Mukta) - - - - - - - - - - - - - - - - - - 3.49 $/MMBtu Private Parties (RELIANCE) - - - - - - - - - - - - - - - 3.27 $/MMBtu (NCV) NIKO-Hazira - - - - - - - - - - - - - - - - - - - - - - - - - - 4.63 $/MMBtu LAKSHMI to GPEC - - - - - - - - - - - - - - - - - - - - - 4.68 $/MMBtu R-LNG (PETRONET) - - - - - - - - - - - - - - - - - - - - 4.87 $/MMBtu (NCV) Infraline Energy Research & Information Services

  3. Competitiveness with Domestic Gas Taxation • Declared Goods Status - Uniform Sales Tax on LNG • Optimize Sales Tax by Purchasing at High Seas Infraline Energy Research & Information Services

  4. Will Consumers Wait and Watch? Segment-wise PLL’s Offtake Power and Fertilizer - End Consumer Pricing Regulated Fertilizer - Beyond 2004, Stage-II (Buy at 3$/MMBtu or Close Shop) Other Industries where demand is not critical  Infraline Energy Research & Information Services

  5. Will Consumers Wait and Watch? Options Available • Domestic Consumption • Captive Power Generation • Transportation Fuel • Air-conditioning Cost Competitiveness with other Fuels • Fuel Oil/LSHS • HSD/LDO • Diesel/Petrol (Cars) • Naphtha • LPG Infraline Energy Research & Information Services

  6. Pressure to Pull Down R-LNG Prices Scenario 1 ONGC/OIL/JVs/RIL Keep Gas Price Below 3 - 3.2 $/MMBtu Infraline Energy Research & Information Services

  7. Pressure to Pull Down R-LNG Prices Scenario 2 Differential Pricing • Power/Fertilizer - 3-3.2 $/MMBtu • Others - 4-4.5 $/MMBtu Infraline Energy Research & Information Services

  8. Would customers want to enter long-term agreements? • ToP Quantity and Volume Flexibility • Reasonable and Consistent Prices • Acceptable Price Volatility and Suitable Linkages • Acceptable Price to Ensure Undisrupted Supply Infraline Energy Research & Information Services

  9. How to make R-LNG More Competitive • Gas Price Deregulation • Find an Anchor Load Customer Couple with Differential Pricing • Downward Integration (Power Generation) • Identify Pockets and Create New Demand • International Experience Infraline Energy Research & Information Services

  10. Natural Gas Pricing – A New Paradigm? Let’s Talk Infraline Energy Research & Information Services

More Related