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• Availability of Kg D6 Gas expected to continue deline 2012-13 & 2013-14

• The Minister of Petroleum and Natural Gas Shri S.Jaipal Reddy informed the Rajya Sabha in a written reply today that the total average daily availability of natural gas during 2010-11 from different sources was 162.1 mmscmd with largest share of 55.35 mmscmd being from KGD6. However, during the current year, the availability of gas from KG D6 which is the major source of natural gas has been steadily declining, with the present availability being around 36 MMSCMD during the month of January 2012. “The availability of gas from KGD6 is expected to continuously decline in 2012-13 and 2013-14. Further, the availability of R-LNG fluctuates from time to time depending upon the demand, price, and tie-ups with suppliers. There is no significant increase expected in domestic production in the next two years,” he added.

• Regarding the query on gas pricing, Shri Reddy stressed that at present, there is no proposal to revise the price of natural gas. Presently, there are broadly two pricing regimes for gas in the country-gas priced under Administered Pricing Mechanism (APM) and non-APM/free market gas, this could also be broadly divided into two categories, namely, (i) imported Liquefied Natural Gas (LNG) and (ii) domestically produced gas from New Exploration Licensing Policy (NELP) and pre-NELP fields. While the price of LNG imported under term contracts is governed by the Sale & Purchase Agreement (SPA) between the LNG seller and the buyer, the spot cargoes are purchased on mutually agreeable commercial terms. As regards NELP & pre-NELP gas, its pricing is governed in terms of the Production Sharing Contract (PSC) signed between the Government & the Contractor.

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