Indian Natural Gas Sector Widening Gap between Supply and Demand

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Indian Gas Sector A Paradigm Shift in Pricing
DynamicsbyIndian Petro Group

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• _at_
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  wer/energy/power/natural-gas

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Indian Gas Sector A Paradigm Shift in Pricing
Dynamics

• The cabinet committee for economic affairs (CCEA)
  has approved the Rangarajan Committees proposal
  to raise the price of Natural Gas from April 1,
  2014. The price of gas is expected to be raised
  to around 8.4/MMBTU and then revised every
  quarter thereafter as per the Rangarajan formula.
  The price of gas is determined by averaging the
  netback wellhead prices of Indian imports and the
  gas prices prevailing at global trading hubs of
  US, UK and Japan.
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  h.com/contacts/discount?rname152135 .

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Indian Gas Sector A Paradigm Shift in Pricing
Dynamics

• While upstream oil and gas companies have been
  demanding a gas price increase for a few years
  now, the fertilizer and power sectors have voiced
  serious concerns over any increase in gas price.
  The upstream companies felt that a low price of
  gas did not adequately compensate them for the
  substantial risks involved in exploration
  activities. Further, the EP companies argued
  that offshore exploration and production is
  significantly costlier than onshore exploration
  and the low price of gas makes deepwater and
  ultra-deep water exploration and
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  search.com/indian-gas-sector-a-paradigm-shift-in-p
  ricing-dynamics-market-report.html

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Indian Gas Sector A Paradigm Shift in Pricing
Dynamics

• production unviable. On the other hand, the power
  and fertilizer sectors are extremely price
  sensitive and any increase in the price of gas
  has a big impact on their profit margins. Both
  these sectors have zero pricing power as the
  prices of fertilizers and energy are heavily
  regulated by the government.
• The production of gas from RILs KG-D6 block was
  expected to transform the gas market in India.
  The gas consumers embarked on an expansion spree
  encouraged by the
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  h.com/contacts/discount?rname152135 .

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Indian Gas Sector A Paradigm Shift in Pricing
Dynamics

• prospects of cheap and abundant gas. Although the
  gas field showed great promise in the initial
  years of production, production has been on the
  decline over the last two years and production
  has decreased to just 14 MMSCMD compared to
  estimated production of 80 MMSCMD. The gas
  utilization policy of the government that assigns
  priority to various sectors for allocation of
  domestically produced gas resulted in a skewed
  distribution of gas supply when domestic
  production declined, benefiting the fertilizer
  sector at the expense of the power sector.
• Complete report available _at_ http//www.rnrmarketre
  search.com/indian-gas-sector-a-paradigm-shift-in-p
  ricing-dynamics-market-report.html

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Indian Gas Sector A Paradigm Shift in Pricing
Dynamics

• For more details contact Mr. Priyank Tiwari
  sales_at_rnrmarketresearch.com / 18883915441

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