Preview: Wellhead gas prices may remain unchanged
Only prices of gas from fields like Sui, Kandhkot and Qadirpur could rise by two to three per cent.
KARACHI:
The upcoming wellhead gas price revision is expected to be less exciting as prices may stay at the same level, according to JS Global Capital.
Only prices of gas from fields like Sui, Kandhkot and Qadirpur, which are quoted in rupees, could rise by two to three per cent. The majority of the field gas prices are quoted in dollar terms.
Wellhead gas prices in the country are revised on a half-yearly basis, depending on average Arab Light crude oil and high sulphur fuel oil (HSFO) prices over the previous six months, said JS Global Capital analyst Umer Ayaz.
However, the recent oil rally hints at a major revision in prices in the first half of fiscal 2012 starting July. International oil prices have averaged around $88 per barrel so far in December, up 15 per cent since June this year.
If oil prices continue to hover in the same vicinity over the next six months, an upward movement of up to eight per cent could be seen in wellhead prices of fields with the uncapped price mechanism.
Published in the Express Tribune, December 24th, 2010.
The upcoming wellhead gas price revision is expected to be less exciting as prices may stay at the same level, according to JS Global Capital.
Only prices of gas from fields like Sui, Kandhkot and Qadirpur, which are quoted in rupees, could rise by two to three per cent. The majority of the field gas prices are quoted in dollar terms.
Wellhead gas prices in the country are revised on a half-yearly basis, depending on average Arab Light crude oil and high sulphur fuel oil (HSFO) prices over the previous six months, said JS Global Capital analyst Umer Ayaz.
However, the recent oil rally hints at a major revision in prices in the first half of fiscal 2012 starting July. International oil prices have averaged around $88 per barrel so far in December, up 15 per cent since June this year.
If oil prices continue to hover in the same vicinity over the next six months, an upward movement of up to eight per cent could be seen in wellhead prices of fields with the uncapped price mechanism.
Published in the Express Tribune, December 24th, 2010.