Hazira gas price raised by 10% from 1st May

Vol 11, PW 2 (31 May 07) News in Brief

GSPC and its partner Niko Resources have raised by 10% the price of gas from the Hazira gasfield in Gujarat.

The new price of $4.50 per thousand cubic feet came into effect from 1st May and replaces the old price of $4.05 per thousand cubic feet. Customers will be charged $4.50 till 30th April 2008.

This increase is in line with the three-year price agreements operator Niko negotiated with customers last year. From 1st May 2008 to 30th April 2009 the price of Hazira gas will go up by another 10% to $4.95 per thousand cubic feet.

All prices after 1st May 2009 will be agreed after negotiations between Niko-GSPC and its customers. In April this year Niko chairman Ed Sampson told investors in New York that the Hazira field, where it has a 33.33% stake, is currently producing 116m cf/d (3.3m cm/d), down from an average 134m cf/d (3.8m cm/d) in 2006.

Gas from the 50-sq km Hazira gasfield is supplied to ten companies, most of them power stations.