The survival of National Thermal Power Corporation (NTPC) Ltd's thermal power plant at Kayamkulam is linked to the pricing mechanism of natural gas, that is, the plant can solve the energy crisis of Kerala if the global pricing system takes a new turn. Alternatively, the Union government will have to take measures to end the disparity in the prices of domestic and imported gas.
Global prices are set according to an international system. There are a few popular formulae to calculate the prices. Two of the most widely accepted pricing systems are Japan Crude Cocktail (JCC) and Henry Hub pricing. Both are linked to international crude prices, according to experts in the industry.