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Gas from Panna, Mukta and Tapti gas fields was priced at $4.08 per million metric British thermal unit (MMBtu), up 31 per cent from the earlier price of $3.11 per MMBtu.
However, the gas sold to GAIL (India) will attract a price of $3.86 per MMBtu.
The UK-based BG group is the operator of the Panna, Mukta and Tapti gas fields with 30 per cent stake.
Reliance Industries also has 30 per cent interest while the state-owned Oil and Natural Gas Corporation has 40 per cent stake in the oil and gas field.
A senior executive close to the deal told Business Standard that, "BG Group and the consortium members have signed the basic agreement on price and quantity with customers at the new rate $4.08 per MMBtu. For GAIL (India), however, at the behest of the ministry, we are offering the gas at $3.86 per MMBtu only for a year."
Gujarat Gas Company Ltd, Reliance Industries' Hazira plant, IPCL's Gandhar and Baroda unit and the Gujarat state-owned Gujarat State Petroleum Corporation have started drawing the gas at the new rate.
"In fact, GSPC has helped us in the price discovery of this gas Although GAIL has drawn gas from PMT and supplied it to its customers, it has yet to take a view on the new pricing," the executive added.
GAIL had protested against any price hike as it would impact its industrial customers largely the state-owned fertiliser and power utilities.
GAIL earlier bought gas at $3.11 per MMBtu to sell the gas to units along its Hazira-Bijaipur-Jagdishpur (HBJ) pipeline at a price of around $2.6/MMBtu. The price difference was then funded as subsidy by the gas pool account.
"The petroleum and natural gas ministry yesterday had a meeting with the consortium members and has agreed on the new price of $3.86 per MMBtu for gas sold to GAIL which will be distributed to fertiliser and power units," the executive pointed out.
Currently, the BG group and its consortium partners ONGC and RIL sell 10.8 to 11 million metric cubic feet of gas per day.
Of the total 11 mmcmd of gas, as per the new agreement, GAIL will get only 6 mmcmd and the rest will be marketed to other industries.
Revenue seen up $100 m
BG Group and its consortium are expected to earn additional revenue of $100 million from the sale of gas at the market driven price of $4.08 per million metric British thermal unit (MMBtu).
ONGC will have almost Rs 1,000 crore (Rs 10 billion) surge in its topline due to the new price realisation of gas from Panna, Mukta and Tapti gas fields.
Industry sources claim, "ONGC alone by virtue of being a 40 per cent equity partner in the joint venture will have at least Rs 200 crore (Rs 2 billion) increase in its topline. Besides, it will save another Rs 750 crore (Rs 7.5 billion) as subsidy on the gas price."
