ONGC has successfully sold 1.4 million standard cubic meters per day (mmscmd) of its initial gas production from the KG basin fields through an e-auction.
In the past, the company relied on direct negotiations for sales. By adopting e-auctions, ONGC aims to increase transparency and promote competitiveness in the gas market.
GAIL, HPCL, and Torrent Gas were among the three firms that participated in the e-auction and secured gas supplies from ONGC. The gas was sold at a rate of USD 11 per mmscmd. GAIL acquired 0.8 mmscmd, HPCL purchased 0.42 mmscmd, and Torrent Gas procured 0.12 mmscmd.
The current market scenario is important for this sale due to the global increase in natural gas prices. Natural gas prices have risen by about 50% over the past year worldwide. Factors contributing to this trend include high demand for natural gas in Asia and reduced production from the United States.
The sale of KG basin gas by ONGC is anticipated to help meet the growing demand for natural gas in India. India currently ranks as the third-largest global importer of natural gas. The sale of KG basin gas supports this objective and represents progress towards its realization.
