InvestorQ : How has the price of natural gas moved in India?
Tanu Shukla made post

How has the price of natural gas moved in India?

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Crowny Pinto answered.
2 years ago

Most prices of natural gas are approximations at a point of time and are subject to constant change. Natural gas is measured in British Thermal Units better known as (MMBTU). The price in dollar terms in a way is largely related to the global prices of crude oil which has moved ups sharply during the year with Brent quoting closer to $80/bbl. As the trend clearly highlights, the price of natural gas holds a strong correlation with the price of crude. Like crude oil, the price of natural gas also peaked in 2014 and has lost over 50% till date. The price of natural gas in the Indian market has a direct correlation price. The global price of natural gas at $2.80/mmbtu roughly translates into Rs.180/mmbtu at the current exchange rates. That is exactly the where natural gas quoting at currently on the MCX. The settlement price of natural gas is actually determined by multiplying the global benchmark rate of natural gas with the RBI reference exchange rate.