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FINANCIAL NEWS
Oman will probably increase price of natural gas sold to industries
12 Nov 2011
(MENAFN) Oman’s Ministry of Oil and Gas said that the government might raise prices of natural gas sold to industries including Oman India Fertilizer Company (Omifco) and a fertilizer plant in Sohar, reported Times of Oman.
The ministry added that the government might reach a new agreement regarding the fixed price with the companies soon, adding that when the ministry inked the old agreement with these industries few years ago, the price of natural gas was very low since these firms were starting their operations in the country.
It also said that under the deal signed with Omifco, the price of natural gas was fixed for 15 years, however, the Omani government planned to renegotiate its contract with India and raise the price of its gas from USD0.77 per million British thermal unit (mBtu) to USD3 per mBtu.
It is worth noting that Oman expects its daily associated and non-associated natural gas output in 2011 to hit around 108 million cubic meters.
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