Likewise, the regulator approved the 2018-19 revenue requirement for SNGP, which serves Punjab and Khyber Pakhtunkhwa, at Rs287bn, necessitating an average prescribed price of Rs629.33 per MBTU
, up 3.37pc (Rs20.57 per unit) from its existing price of Rs608.76 per unit.
Asian LNG prices could end the year at nearly $12 per mBtu
, though higher spot prices could discourage industrial coal to gas switching, said Woodmac's Browne.
At a gas price of $5 per mBtu
, the value of the gas in the resource will be $15 billion, say industry experts.
The total cost of new production is estimated to be $2-5 per mbtu
, below the level at which other potential new projects are viable.
LNG spot prices in Asia are about $8 (Dh29.36) per million British Thermal Unit (mbtu
) which are 60 per cent less than what they were a year ago and even much lower than February 2014's spot prices of $19.7 per mbtu
Energy that will be consumed throughout the year by the cooling coil of the system without heat recovery unit will be 1286.3 MBTU
as shown in the fig.3.4.
At the start of 2015, analysts at Oxford Institute for Energy Studies, Bloomberg New Energy Finance and Holmwood Consulting have already signaled room for oil-linked LNG prices in Asia to trend down to below $10 per million British thermal unit (mBtu
) later this year.
LNG prices in Asia are currently below $10 per mn British thermal units (mBtu
) as new supply from the US and Australia comes online.
Domestic fuel subsidies have also been reduced; in December 2014, the Ministry of Oil and Gas announced that gas prices would double from January 1, rising from $1.50 per million British thermal unit (mBTU
), to $3 per mBTU
, which will bring in millions of additional revenues.
LNG imports into India are currently in the range of $13-14 per million British thermal units (mbtu
) and after including customs or import duty, pipeline transportation charges and local taxes, the delivered price will be close to $21 per mbtu
But getting LNG means competing with the Asian countries, which pay US$18 per Mbtu
[million British thermal units: 1 Mbtu
equals around 28 m3 - Ed].
For this project, it is noteworthy that EnergySwift managed to propose solutions that helped clients achieve 52% savings in MBtu
and 40% saving in utility bills.