14th Jan 2014 12:55
LONDON (Alliance News) - Indus Gas Ltd Tuesday said a new pricing formula for domestic gas in India, coming into place in April, should encourage additional exploration and development for the company.
The India-focused oil and gas exploration and development company said the price is expected to rise to USD8.4 per million British thermal units in 2014, USD10 per million in 2015 and potentially higher in the following years.
Indus noted that the current spot Indian imported liquefied natural gas pricing is over USD14 per million British thermal units.
The company said the price rise will be applicable for new gas supply contracts and its existing 33.5 million cubic feet per day pricing is expected to be in place from October 2015.
"We anticipate that this will encourage additional exploration and development activity and be a major positive contributor to India's long term energy policy," company Chairman Peter Cockburn said in a statement.
In December, the company announced a significant increase in its pretax profit for its half-year to USD5.0 million from USD604,028 after a massive increase in its revenue on the back of higher contracted gas sales volumes.
Indus Gas shares were down 1.6% to 860.50 pence Tuesday.
By Tom McIvor; [email protected]; @TomMcIvor1
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