Friday, May 13, 2022

Vedanta invites bids for sale of 0.10 MMSCMD natural gas from Barmer field

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  • The e-auction for the sale of gas from the Barmer field will take place on May 12 and the Gas Sales Agreement is expected to be signed within seven days after the auction
  • Vedanta has pricing and marketing freedom for the gas produced from the field in Barmer

New Delhi: Vedanta has invited bids for the sale of natural gas from its Barmer field in Rajasthan at a floor price of US$7.1 per mmBtu, an auction document showed. The company is planning to auction 0.10 Million Metric Standard Cubic Metres a Day (MMSCMD) of natural gas from its RJ-ON-90/1 Block. The supplies will start from June 1 and end on May 23, 2023. The block was awarded by the government to Vedanta in 1995 under the Production Sharing Contract (PSC) regime and is currently held by a joint venture of state-run Oil & Natural Gas Corporation (ONGC), Vedanta Limited and Cairn Energy Hydrocarbons Limited (CEHL).

“In line with the “Natural Gas Marketing Reforms” notification published by Ministry of Petroleum and Natural Gas (MoPNG) on 15th October 2020 and detailed guidelines issued on 03rd December 2020 as “Discovery of Market Price for Domestically Produced Natural Gas through ebidding notification (“Ministry Notifications”), Vedanta on behalf of the Sellers has issued a Notice Inviting Offer dated 21st April 2022 and invited offers from interested companies (each, a “Bidder” and collectively, the “Bidders”) to offtake all or a portion of 0.10 MMSCMD of gas available for sale (“Sale gas”) from the Gas Field, RJ Block in accordance with the terms and conditions of this RFP and the Gas Sale Agreement (the “GSA”),” said the auction document

E-auction for gas sale to take place on May 12: Vedanta

The e-auction for the sale of gas from the Barmer field will take place on May 12 and the Gas Sales Agreement is expected to be signed within seven days after the auction. Vedanta has pricing and marketing freedom for the gas produced from the field in Barmer. The oil and gas major has fixed the floor rate at one dollar above the price fixed by the government for H1 of FY23. The current formula price of natural gas is US$ 6.1 per mmBtu. The sale price is to be calculated as the lower of Platts West India Marker plus one dollar or 16.67 percent of the average Brent price plus a premium that bidders would quote.

Vedanta’s Raageshwari Terminal evacuates gas from Barmer field

Vedanta Limited has developed Raageshwari Gas Terminal to process and evacuate natural gas produced from RJ Block in Barmer field. RGT is connected by Barmer-Pali pipeline of GSPL India Gasnet Limited to GSPL’s high-pressure Gujarat grid which is further well connected to the National gas grid, said the auction document.

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