GAIL cuts gas prices by 2 pc

NEW DELHI, Apr 1: Gas Authority of India Ltd (GAIL) announced an over two per cent cut in prices of gas at Rs 2,167 per thousand cubic me...

NEW DELHI, Apr 1: Gas Authority of India Ltd (GAIL) announced an over two per cent cut in prices of gas at Rs 2,167 per thousand cubic metres (TCM) effective from today in tune with lower international prices.Slashing of prices by Rs 48 per TCM was based on lower international prices of fuel oil during the last three months and provides for 75 per cent import parity as against 60 per cent till 1998-99.

"The prices of gas might go up from the next quarter beginning July as the international market has started firming up since the last fifteen days," chairman and managing director of GAIL C R Prasad told reporters last night.The change in gas prices would not have any impact on GAIL’s financial performance as any increase would be passed on to consumers and the company would get its charges for only transportation of the feedstock, he said.

Reporting a net profit of Rs 1020 crore (unaudited) on sales turnover of Rs 6800 crore for the year 1998-99, Prasad said profits for 1999-2000 would be almost in thesame range even though availability of gas from ONGC would be lower than last year.

The difference in sales would be more than made up from the corporation’s newly-commissioned petrochemical complex at Pata in Uttar Pradesh, he said. Gas sales of the corporation during 1998-99 were recorded at 57.64 million metric cubic meters per day (mmsmd) as against 54.93 mmscmd in the same period last year, Prasad said.

"The main contribution to increased turnover despite the reduced supplies has been from increased gas handling along Hazira-Bijapur-Jagdishpur (HBJ) pipeline and increase in gas sales in the southern region," he said.Stating that GAIL had completed projects worth Rs 2,200 crore out of Rs 3,900 crore during the year, he said, the major projects under execution currently were the Rs 440 crore LPG plant at Auraiya and Rs 1,230 crore Kandla-Loni LPG pipeline.

"GAIL is also looking at exploration and non-conventional sources for increasing availability of natural gas and other energy resources as a steptowards diversification," he said.The corporation is examining possibility of participation in exploration and production opportunities announced under new exploration and licensing policy (NELP) and for this GAIL was also planning to associate with Oil and Natural Gas Corporation (ONGC), Prasad said. "GAIL would also pursue opportunities in coal bed methane bidding round as and when it is announced by the directorate general of hydrocarbons," he said.

Apart from these, GAIL hopes to shortly obtain government approval for the Rs 365 crore LPG complex at Gandhar, he said. Asked about appointment of directors in Navratna board of the corporation, Prasad said, petroleum ministry had already approved the names of the directors.