GSPC is ready to produce gas from a field in the Krishna Godavari basin. It has completed the $2 billion development of the Deen Dayal shallow-water gas field and is conducting pre-commissioning and testing activities. Gas production is likely to start in June. Last year, GSPC sought to sell gas at the rate at which India imports long-term LNG (liquefied natural gas) from Qatar. At $100 per barrel of oil, the LNG import price comes to about $13 per million British thermal units. The UPA government did not approve this rate and instead went by a formula suggested by a panel headed by C Rangarajan, under which the price of gas in this quarter should be about $ 8.3 per mmBtu. The price wasn't notified due to the elections and the new government under Modi is expected to decide on the matter.
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