MoPNG clarifies the basis of revised CBG procurement pricing

What the source says

MoPNG's clarification states a CBG procurement price of ₹2,110 per MMBtu under the GOBARdhan scheme and distinguishes it from the price paid by retail consumers. The release compares this with the previous linked-price basis.

Project implication

Our interpretation: reconcile financial models with the actual applicable purchase terms, calorific-value basis, delivery point and deductions. Do not substitute an energy price directly for a kilogram price. Confirm commencement and eligibility in the relevant implementing documents and agreement.

How to use the clarification in a financial model

The practical task is to reconcile the model with the purchase agreement. Record the energy-price unit, calorific-value convention, delivery boundary and applicable deductions. A model should allow these inputs to be changed without altering the physical gas-production assumptions.

Separate producer receipts, government support and the buyer's cost allocation. Do not add a support figure to the producer's revenue simply because it appears in the same release; its intended recipient and mechanism must be established in the applicable documents.

Checks before revising a proposal

Treat the announcement as a reason to review the commercial basis, with the remaining conditions shown explicitly. The relevant counterparty should confirm which purchase terms apply to the proposed facility.

• Confirm the effective purchase terms for the specific project.
• Identify the measured energy and gas-quality basis.
• Keep compression, delivery and other deductions visible.
• Test net receipts under changes in gas quality and operating availability.