ONGC seeks $4 per mmBtu for gas from its fields

NEW DELHI: State-run Oil and Natural Gas Corp today demanded a minimum of $4 per million British thermal unit (mmBtu) for the gas it receives on nomination basis from the fields as it was incurring losses to the tune of Rs 100 crore per day at current prices.

ONGC gets USD 2.11 per mmBtu for the gas produced from the fields given to it on nomination basis.

"On our total gas business, which includes gas outside the APM (Administered Pricing Mechanism), we lost Rs 700 crore in revenues in 2007-08. If we look at APM gas , we lost Rs 900 crore," ONGC Chairman and Managing Director R S Sharma said on Thursday.

Sharma said the company would break even at a gas price of $3 per mmBtu, and to sustain future investment it needed a minimum price of $4 per mmBtu.