Vedanta has invited bids for natural gas from its Barmer field in Rajasthan at a floor price of $7.1 per mmBtu, according to the e-auction document. Vedanta plans to auction 0.10 million metric standard cubic meters a day of natural gas on May 12. The supplies will start no later than June 1 and end on May 31, 2023.
Vedanta has the pricing and marketing freedom for the gas it produces from the Barmer field. The floor rate has been fixed as one dollar above the domestic formula price that the government publishes every April and October. The current formula price is $6.1 per mmBtu. The sale price is to be calculated as the lower of Platts West India Marker plus one dollar or 16.67% of the average Brent price plus a premium that bidders would quote.
Platts West India Marker is the liquefied natural gas (LNG) price assessment for spot physical cargoes of delivered ex-ship into ports in India and the Middle East region.