The minister of state (I/C) for petroleum & natural gas Dharmendra Pradhan informed the Rajya Sabha in a written reply today that Gujarat State Petroleum Corporation (GSPC) has not intimated about the start of commercial production of gas from its discoveries in the Block (KG-OSN-2001/3) in KG basin. As per the approved Field Development Plan, initial production of 1.0 MMSCMD (Miliion Standard Cubic Meters per Day) and peak production of 5.0 MMSCMD is envisaged.
On Oct. 13, 2014, GSPC has requested this Ministry to nominate Gujarat Narmada Valley Fertilizers & Chemicals (GNFC) for supply of DDW field gas at price and delivery terms actually negotiated between GSPC and GNFC based on arm’s length principles.
GSPC has also informed that GNFC agreed to purchase gas produced from DDW field at 8.5 USD/MMBTU. In this regard, on Nov, 14, 2014, this Ministry has decided that the matter of pricing of DDW gas would be as per the new domestic natural gas pricing guidelines, 2014 notified on Oct. 25, 2014.