Indus Gas Ltd on Thursday said it has agreed on a gas price increase for sales from RJ-ON/6 block with Gail (India) Ltd.

Shares in the oil and gas explorer and developer with assets in India were up 4.0% to 283.00 pence each in London on Thursday morning.

Gail is a state-owned natural gas explorer and producer, based in New Delhi, India.

Indus Gas said that from April 2022 the gas price for RJ-ON/6 block was as per the domestic gas price on gross calorific value basis, as notified by the Petroleum Planning & Analysis Cell of the Indian government.

The floor price of gas sales was $4.51 per metric million British thermal unit on a gross calorific value basis. This is equivalent to the the existing price realisation of $5 per MMBtu on a net calorific value basis up to March 31.

The company explained that the gas price revision has resulted in it being revised to $6.1 per MMBtu on a gross calorific value basis from April 1 to September 30. This will result in a price increase of around 35%.

‘The board is very pleased to have agreed this higher gas price with Gail,’ Indus said.

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