Vedanta invites bids for natural gas from Rajasthan block
OIL & GAS

Vedanta invites bids for natural gas from Rajasthan block

The floor price for the natural gas from Vedanta's Rajasthan block is $9.57 per mmBtu. According to the e-auction document, Vedanta intends to sell 3 million metric standard cubic metres of gas per day (mmscmd) during an auction scheduled for January 18. Starting on April 1, the supply will be made available for a whole year from the Raageshwari gas terminal in Barmer, Rajasthan.

The domestic formula price, which is updated every six months and is now $8.57 per mmBtu, will serve as the floor price and will be one dollar higher than it. The lowest bidder's premium plus the lower of Platts LNG West India marker or 15.25% of the average Brent price shall be the sale price.

The sale price would be $12.5 per mmBtu at the current Brent price of $82 per barrel and zero premium. Vedanta has complete control over the price of the gas it generates from its Rajasthan block. The majority of the nation's producing fields lack pricing flexibility; thus their gas is sold at the domestic formula price. Gas from challenging fields may be offered for sale at market prices, subject to a cap that is currently set at $12.46 per mmBtu.

The gas market has been experiencing unprecedented upheaval for a little over a year, which has kept prices high and made it exceedingly unpredictable. India's gas imports and usage have decreased as a result. Increased domestic gas production could aid in reducing imports.

The floor price for the natural gas from Vedanta's Rajasthan block is $9.57 per mmBtu. According to the e-auction document, Vedanta intends to sell 3 million metric standard cubic metres of gas per day (mmscmd) during an auction scheduled for January 18. Starting on April 1, the supply will be made available for a whole year from the Raageshwari gas terminal in Barmer, Rajasthan. The domestic formula price, which is updated every six months and is now $8.57 per mmBtu, will serve as the floor price and will be one dollar higher than it. The lowest bidder's premium plus the lower of Platts LNG West India marker or 15.25% of the average Brent price shall be the sale price. The sale price would be $12.5 per mmBtu at the current Brent price of $82 per barrel and zero premium. Vedanta has complete control over the price of the gas it generates from its Rajasthan block. The majority of the nation's producing fields lack pricing flexibility; thus their gas is sold at the domestic formula price. Gas from challenging fields may be offered for sale at market prices, subject to a cap that is currently set at $12.46 per mmBtu. The gas market has been experiencing unprecedented upheaval for a little over a year, which has kept prices high and made it exceedingly unpredictable. India's gas imports and usage have decreased as a result. Increased domestic gas production could aid in reducing imports.

Next Story
Infrastructure Urban

We are able to raise resources at very competitive rates

The National Bank for Financing Infrastructure and Development (NaBFID) has set a target to sanction Rs.3 tn by March 2026, as announced by Union Minister of Finance Nirmala Sitharaman. Rajkiran Rai G, Managing Director, elaborates upon the bank’s policies and processes, evaluation mechanisms, plans for long-term financing, and more. Excerpts:To date, NaBFID has sanctioned over Rs.1 trillion with projects across the country and in subsectors like roads, renewable power, ports, railways and city gas distribution. Which other sectors have been selected for disbursal?Other than roads and t..

Next Story
Infrastructure Urban

India’s Fastest-Built Structure!

Founded in Greater Noida in 1999, EPACK Prefab, one of India’s leading pre-engineered building (PEB) companies, has constructed India’s fastest-built factory in a record time of just 150 hours. This factory will act as EPACK’s assembly unit and is located in Mambattu, Andhra Pradesh. It spans 151,000 sq ft and was built with a budget of Rs.19 million, with a total structure tonnage of 496 million tonne (mt).Rise of prefabricated buildingsPrefabricated buildings, commonly known as prefabs, are structures made up of components such as walls, roofs and floors that are produced in a factory...

Next Story
Technology

3D Sustainable Construction

Founded in 2016 by IIT-Madras alumni, Tvasta is pioneering the transformation of construction through 3D printing. By creating  an end-to-end technology stack,  the company focuses on faster, cost-effective and sustainable solutions, redefining industry practices and setting benchmarks for innovative, green construction methods. VS Adithya, CEO and Co-Founder, Tvasta, shares his vision, journey and long-term goals in conversation with  R SRINIVASAN. Excerpts:Please share the Tvasta journey, the source of inspiration, why this name was chosen and how the funding ha..

Hi There!

"Now get regular updates from CW Magazine on WhatsApp!

Join the CW WhatsApp channel for the latest news, industry events, expert insights, and project updates from the construction and infrastructure industry.

Click the link below to join"

+91 81086 03000