ONGC sells 1.4 mscmd gas from KG-D5 block

ONGC has sold 1.4 mscmd of gas, a fraction of the planned output, from its KG-D5 block located next to the KG-D6 block in the Bay of Bengal to Torrent Gas Pune Limited, GAIL (India) Limited and Hindustan Petroleum Corporation Limited (HPCL). GAIL has sought 0.8 mscmd gas while HPCL and Torrent Gas have secured 0.42 mscmd and 0.12 mscmd, respectively. ONGC has sought bids from city gas operators that sell compressed natural gas to automobiles and piped cooking gas to households, companies, liquefied petroleum gas producers, traders, etc. It has asked them to quote a premium over and above the rate arrived at by calculating 14 per cent prevailing Brent oil price plus $1 per million British thermal unit (mBtu).