why there stalling deep water price 3 rd world country that thinks there a world leader lol in industry
Mumbai/New Delhi: The government will probably reduce the price of natural gas next month by about 14%, dealing a potential blow to explorers Reliance Industries Ltd (RIL) and Oil and Natural Gas Corp. Ltd (ONGC).
The government-set price will track a global decline and fall to less than $4 per million British thermal units for October through March from $4.66, the average of 12 industry estimates in a Bloomberg News survey shows. India reviews the cost half-yearly, using a formula capturing international trends.
A reduction could squeeze profits and curb the scope for gas investment at state-run ONGC and billionaire Mukesh Ambani’s Reliance Industries even as India struggles to stem a drop in output. Power producers and fertilizer makers stand to benefit from a price cut, as does the government’s budget balance since India subsidizes fertilizer to keep it affordable for farmers.
“Globally, gas prices have slumped, which means there will be a sharp drop in Indian prices,” said Deepak Mahurkar, leader for the oil and gas team at PricewaterhouseCoopers in India. That isn’t a good backdrop for the health of the industry or spurring exploration, he said.