Ennore Port will be able to lease 5.2 lakh sq m of land to a joint venture led by IOC for setting up a LNG storage and regasification plant at the port.

Domestic gas prices may be fixed at $2 lower than the $8.8-per-unit price discovered by the Rangarajan commitee constituted to suggest changes in the production-sharing contract and future domestic gas-pricing mechanism.

Sources said the oil ministry agreed to the basic principle of gas pricing suggested by the panel, but wants it to be modified slighty to also take into account gas prices in countries such as Malaysia, Saudi Arabia, Qatar and Nigeria that account for a major portion of India's liquified natural gas imports.

Rs 60,352-cr impact on power, urea makers; FinMin comes up with its own formula

Even before an empowered group of ministers starts deliberating on a revision in natural gas prices, the finance, power and fertiliser ministries have raised a red flag on the recommendations of the Rangarajan panel. Only the Planning Commission seems to be in agreement with the committee’s proposal to use a proposed formula as “an interim or transitional solution” till March 2017.

While rejecting the formula suggested by the Rangarajan Committee on gas pricing, the Finance Ministry has asked the Petroleum and Natural Gas Ministry to place before the Empowered Group of Minist

The proposal for the doubling of natural gas price made by the Rangarajan committee has the oil and power ministries at loggerheads.

The company finds hoards of buyers willing to pay a rate equivalent to what India pays to Qatar for importing LNG

After Reliance Industries Ltd, GSPC, the firm floated by Narendra Modi government, plans to sell natural gas from its KG basin fields at imported LNG rate of $14.2 per mmBtu. In a nearly month-long, elaborate market price discovery exercise, Gujarat State Petroleum Corp (GSPC) found hoards of buyers willing to pay a rate equivalent to what India pays to Qatar for importing gas in its liquid form (LNG).

Indian Oil Corporation (IOC) has invited bids for the construction of a 5 million tonne-a-year LNG terminal at Ennore in Tamil Nadu, which would be constructed at a cost of Rs. 4320 crore.

According to officials, IOC is seeking expression of interest (EoI) proposals for a lump sum engineering, procurement and construction (EPC) contract for the LNG import and re-gasification terminal. The last date for submitting EoI is April 16.

Tanzania plans to raise spending by 17 percent in 2013/14 to 17.7 trillion shillings ($11 billion) with a focus on infrastructure projects, and aims to lift growth to 7 percent in 2013.

The petroleum ministry will approach a ministerial panel for a road map on a gas price pooling mechanism to help the power sector absorb the high costs of imported liquified natural gas (LNG) and prevent investments of over R1 lakh crore from becoming non-performing assets.

Petroleum minister M Veerappa Moily said on Wednesday that he will move a note for the consideration of a high-powered ministerial group to change priority of allocation of the fuel as well as pooled pricing of imported and domestic gas. Moily was talking to reporters after meeting with a delegation of power producers including Anil Ambani (Reliance Power), GM Rao (GMR) and Madhusudan Rao (Lanco).

In keeping with new-found proximity to Gujarat chief minister Narendra Modi, UK minister of state for foreign office Hugo Swire in the second high-profile visit to the state after British high commissioner James Bevan’s visit, spent an hour with the CM in a bid to take the “engagement” to the next level.

Briefing the media following his interaction, the UK foreign minister said the talks focused on “engaging more with Gujarat”. The high point of the visit, however, was the announcement made by BG chief executive Chris Finlayson of completion of the agreement for the long-term sale of LNG to India.