JCC= Japan Crude Cocktail or Japan custom cleared crude. Myanmar – LNG 1. India Pn = 1.1+JCC X 0.06 JCC: is the average of JCC values for the month of n-3 to n-14, where n is the month in which LNG is being delivered from the project. 2. Korea Gas Corporation Pn= 0.125 X JCC (n-3) – [0.0033XPc3(n-1) – 0.153 X (0.125XJCC(n-3) + 0.80 JCC (n-3): average of JCC for three month prior to delivery month Pc3 (n-1): price per metric ton for the weighted average of the CIF import prices of propane into Korea in the month “n-1”. 3. Marubeni Corporation (Japan) Pn = 0.11 X JCCm+0.72 JCCm: average of two month (n-2), three month (n-3) and four month (n-4) JCC prior to delivery month.
PMT Price Price of Gas for each MMBTU for each Contract Quarter shall be determined by the following formula: Price = Base Price x (A/B) Where : A =
A value calculated for the HS / LSFO Basket, evaluated for the twelve (12) months preceding the first month of any Contract Quarter calculated on the basis of the arithmetic average of the monthly values of the prices of the listed products as published in Platt’s Oil gram Price Report.(These values are derived from the mean of the daily ranges on days the postings are published to give a monthly value).
B =
[ ].A value calculated for the HS / LSFO Basket, evaluated for the twelve (12) months April 1993 through March 1994.
The High Sulfur / Low Sulfur Fuel Oil Basket (“HS / LSHO Basket”) is valued as equal parts of: (1)
bulk residual fuel oil, containing one percent (1%), sulphur, quoted for Mediterranean, basis Italy, (Cargoes, FOB Med, basis Italy); and
(2)
bulk residual fuel oil, containing one percent (1%) sulfur, quoted for Northwest Europe Cargoes, CIF, basis ARA, (Cargoes CIF NEW, Basis ARA), and
(3)
bulk residual fuel oil, Singapore Cargoes, containing three and one-half percent (3.5%) sulfur, viscosity 180 centistokes, (Singapore HSFO, 180 cst), and
(4)
bulk residual fuel oil, Cargoes, FOB Arab Gulf, viscosity 180 centistokes, (Arab Gulf, FOB HSFO 180 cst)
The Price of Gas from each field shall not be less than the Floor Price and more than the Ceiling Price as mentioned hereinafter: The Floor Price (“Floor Price”) for Panna-Mukta and Mid & South Tapti Fields is equal to $ 2.11 / MMBTU. The Ceiling Price (“Ceiling Price”) for Panna-Mukta Fields is equal to $ 5.73/MMBTU. The Ceiling Price (“Ceiling Price”) for Mid & South Tapti Fields is equal to $ 5.57/MMBTU.
Parties agree to convert US$ / barrel prices for fuel oil as published in Platt’s Oil gram to US $ / MMBTU using a conversion factor of 6.28. If Platt’s Oil gram is no longer published, an alternate publication shall be mutually agreed upon.
Reliance Gas Price Original RIL Formula (as per GAIL-Term Sheet) 112.5*K + C + ER*(CP-25)0.15 Fixed component Biddable component Brent crude linked component − − − − − −
K=1 if ER is more than 25 and less than 65 K=ER/25 if ER is 25 or lower K=ER/65 if ER is 65 or more C is the biddable component (a non zero positive integer) As per term sheet signed between GAIL and RIL, C =4 CP is the average price or Brent crude oil in US$/barrel for previous FY. CP floor has been kept at 25 and CP cap at 65
Presently ‘CP’ is greater than the ceiling and is not expected to come below 65 in the near future so the Brent crude linked component is likely to remain based on CP cap. Thus RIL gas price (Considering USD 1=41 INR) as per term sheet is : = 112.5+4+(41*1.74) =112.5+4+71.3 =187.8 Rs /MMBTU or 4.58 $/MMBTU New RIL Gas Formula: (As per Press Reports) ER*2.5 + C + ER*(CP-25)0.15 Fixed component Biddable component Brent crude linked component − C is the biddable component (a non zero positive integer) − Presently C has been kept at Zero with an option with Govt. to review it − CP is the average price or Brent crude oil in US$/barrel for previous FY. − CP floor has been kept at 25 and CP cap at 60 Presently CP is greater than the ceiling and is not expected to come below 60 in the near future so the Brent crude linked component is likely to remain based on CP cap. Thus, based on revised formula {ER*2.5+0+ER*(60-25) 0.25}, RIL gas price shall be as under: = ER*(2.5) + 0 + ER*1.7 = 41*2.5 + 41*1.7
= 102.5 + 69.7 =Rs 172.2/MMBTU or $ 4.2 per MMBTU (This is the base Price @ USD=41 INR) Under the new formula, the total price is USD denominated whereas in the original formula there was a INR component and a USD component. Also, since biddable component can again be introduced subsequently, the price can increase in future whenever such a review is under taken. Under the current exchange rate scenario, the new formula results in a lower gas price.(see attached graph)
R-LNG Price for RLNG from PLL Dahej 1. In terms of the contract signed between PLL and Rasgas, the LNG price formula is Monthly LNG FOB Price = 1.90/15 * JCC. JCC price would be the average of the preceding 12 months average leaving the last 3 months including the pricing month. The above price is subject to a floating ceiling and floor price linked to JCC price. 2. However for the first five years ending 31st December 2008, the JCC price in the above formula would be a fixed price of $20/Bbl. Accordingly the LNG FOB price is a fixed price of $2.53/MMBTU upto 31.12.2008. a)The price for period commencing from 1st January, 2009 shall be subject to a floating cap and ceiling. The cap and ceiling to be computed as below: Floating Cap =
(60-N)*20+(N*A60) ------------------------- + 4 60
Floating Floor =
(60-N)*20+(N*A60) ------------------------- - 4 60 Where N = 1 for Jan,2009, increasing by 1 each month until it reaches 60 for December 2013 and remaining 60 thereafter for each month upto the end of the term of this Agreement. A60 = the arithmetic average of JCC over the period of sixty month. The main source of supply through HVJ network during 2009-11 would be from PLL (including capacity from 5 MMTPA to 10 MMTPA).
Myanmar Pipeline Bid Formula as given in the Pipeline Bid Price in $ / mmbtu (P) = [Alfa] x (0.5 x (Henry Hub / Henry Hub p) + 0.5 x (Fuel Oil / Fuel Oil p)) + [Beta], where Henry Hub: The yearly average of closing price for prompt month Nymex futures for Natural Gas (one year period before each Recalculation Date). Henry Hub p being this figure for 2006 ($ 6.9769 / mmbtu). Fuel Oil: The yearly average of mean of FO 180CST 2% price under FOB Singapore published by Platt's Asia-Pacific / Arab Gulf Marketscan (one year period before each Recalculation Date). Fuel Oil p being this figure for 2006 ($ 328.1588 / ton). Alfa and Beta: The figures which a bidder is requested to propose respectively for the determination of Pricing Formula applicable to sale and purchase of gas. GAIL reviewed the affordable price level and based on final customer price of $ 7.2 / mmbtu in the eastern Indian market, had quoted Alfa = 3.34 & Beta = 1.67. Modified Yetaguna Price formula as applicable to PetroChina Price = (P1+T) * [0.2 (CPIY/CPI) + 0.2(OMY/OM) + 0.5(FY/F)+0.1] P1 = Price on Well Head Basis, 4.271 T (Off-shore tariff) = $1.042 / mmbtu, 100% floating with the formula - proposed by Consortium; whereas PetroChina has proposed T = $0.8 / mmbtu Denominators CPI (USA CPI), OM (USA OM) & F (FO Singapore) equal to Yetaguna numerators on the day of GSA signing and the Numerators would be last 12 months averages as per Yetaguna formula.
Turkemenistan
Petro China Price Formula Original Yetaguna Price formula By = P1 [ k1 ( CPIY / CPl ) + k2 ( OMY / OM ) + k3 ( FY / F ) + K 4 ] where P1 = base for normal price at mid 1998 = 3.0 US$ /MMbtu k1 = weighted constant factor for Consumer Price Index in the USA (CPI USA) = 20 % CPIy = CPI USA for last 12 months with 6 months lag. k2 = weighted constant factor for Producer Price Index for Oil Tools Machinery (OM ) = 20 % OMy = PPI (Oil Machines Tools – USA) for last 12 months with 6 months lag k3 = weighted constant factor for Fuel Oil ( FO) = 50 % Fy = Singapore Fuel Oil (2% S 180 Cst) for last 12 months k4 = weighted constant factor for fixed part = 10 % CPI = 170.036 for 1998 OM = 117.711 for 1998 F = 15.5 US$ /BBl for 1998 Therefore normal price By is By = 3.0 [ 0.2 ( CPlY / 170.036 ) + 0.2 ( OMY / 117.711 ) + 0.5 ( FY /15.5 ) + 0.1 ]
Turkmenistan Pn = Po X (0.33 X Hn/Ho + 0.34 X Ln/Lo + 0.33 X Gn/Go) Pn = the calculated price in US dollars per 1000 m3, at QH = 7950 kcal/m3 Po = base price in US dollars/1000 m3 Hn = the arithmetic mean of the monthly prices for fuel oil with a viscosity of 380 CST. Ho = the base value, which is the arithmetic mean of the monthly prices for HSFO 380 CST fuel oil. Ln = the arithmetic mean of the monthly prices for fuel oil with a viscosity of 180 CST. Lo = the base value, which is the arithmetic mean of the monthly prices for HSFO 180 CST fuel oil. Gn = the arithmetic mean of the monthly prices for Gasoil Reg. 0.5% in US dollars per barrel. Go = the base value, which is the arithmetic mean of the monthly prices for Gasoil Reg 0.5% in US dollar per barrel.
