New book by Larry Connors Click here Improve your trading - See how
ONGC confirmed the development to ET. The PSU will sell 1 mmscmd gas to Mahagenco. Replying to a query from ET, ONGC stated that gas supply to Mahagenco has been effected from September 1, 2008, to "tide over the power situation in Maharashtra." Under the agreement, ONGC will supply the gas, through Gail's pipeline to Mahagenco, subject to ministry approval. Interestingly, Gail supplies 2 mmscmd of gas to Mahagenco at $2.2 mmBtu. Gail buys it from ONGC.
The development assumes significance as it is expected to act as a benchmark for gas sale, industry sources said. Post the ONGC-Mahagenco deal, RIL may seek to revise its gas supply price of $4.32 per mmBtu, they added. RIL is also planning to approach the government to revise gas price after a spurt in crude prices. The price of $4.32 was arrived at by linking it to the crude price at $60 a barrel, which is now around $110.
Sources said that ONGC had initially sought to sell gas at $16 per mmBtu but scaled it down by $5 after the intervention of Maharashtra chief minister Vilasrao Deshmukh and petroleum minister Murli Deora.
MahaGenco's gas-starved Uran plant is running under half its installed capacity of 850 mega watts. Mahagenco desperately needs supplies for its under-utilised plants, especially with the start of the festive season.
Industry sources said Mahagenco has no alternative but to procure gas from PSUs. "ONGC seems to be taking advantage of the situation," they added. Mahagenco had earlier said it would be impossible to sustain operations if it buys gas at $11.
Mahagenco called upon ONGC to reduce price to RIL's rate and also offered to provide a bank guarantee of Rs 100 crore.
To see more of The Economic Times, or to subscribe to the newspaper, go to http://economictimes.indiatimes.com Copyright (c) 2008, The Economic Times, India Distributed by McClatchy-Tribune Information Services. For reprints, email tmsreprints@permissionsgroup.com, call 800-374-7985 or 847-635-6550, send a fax to 847-635-6968, or write to The Permissions Group Inc., 1247 Milwaukee Ave., Suite 303, Glenview, IL 60025, USA.
More News:
Market Updates |
Stock Alerts |
All Trading News |
Stock Index
About TradingMarkets | Contact | Advertise | Careers | Link to Us | Site Map | Help | Terms & Conditions | Privacy Policy | Return Policy | Testimonials | Feedback
The Connors Group, Inc. ("Company") is not an investment advisory service, nor a registered investment advisor or broker-dealer and does not purport to tell or suggest which securities or currencies customers should buy or sell for themselves. The analysts and employees or affiliates of Company may hold positions in the stocks, currencies or industries discussed here. You understand and acknowledge that there is a very high degree of risk involved in trading securities and/or currencies. The Company, the authors, the publisher, and all affiliates of Company assume no responsibility or liability for your trading and investment results. Factual statements on the Company's website, or in its publications, are made as of the date stated and are subject to change without notice.
It should not be assumed that the methods, techniques, or indicators presented in these products will be profitable or that they will not result in losses. Past results of any individual trader or trading system published by Company are not indicative of future returns by that trader or system, and are not indicative of future returns which be realized by you. In addition, the indicators, strategies, columns, articles and all other features of Company's products (collectively, the "Information") are provided for informational and educational purposes only and should not be construed as investment advice. Examples presented on Company's website are for educational purposes only. Such set-ups are not solicitations of any order to buy or sell. Accordingly, you should not rely solely on the Information in making any investment. Rather, you should use the Information only as a starting point for doing additional independent research in order to allow you to form your own opinion regarding investments. You should always check with your licensed financial advisor and tax advisor to determine the suitability of any investment.
HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN INHERENT LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING AND MAY NOT BE IMPACTED BY BROKERAGE AND OTHER SLIPPAGE FEES. ALSO, SINCE THE TRADES HAVE NOT ACTUALLY BEEN EXECUTED, THE RESULTS MAY HAVE UNDER- OR OVER-COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY. SIMULATED TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFITS OR LOSSES SIMILAR TO THOSE SHOWN.
The Connors Group, Inc.
15260 Ventura Blvd., Ste. 2200
Sherman Oaks, CA 91403
© Copyright 2009 The Connors Group, Inc.
