India Hikes Ceiling Price for Deep-Sea Gas to $9.89 Per MMBTU
The Indian government has increased the ceiling price for natural gas produced from difficult fields to $9.89 per million British thermal units (MMBtu) for six months, starting October 1.
This new ceiling applies to gas produced from deepwater, ultra-deepwater and high-pressure, high-temperature discoveries between October 1, 2026 and March 31, 2027, according to a notification issued by the Petroleum Planning and Analysis Cell (PPAC) under the oil ministry.
The higher ceiling could provide some relief to producers developing offshore gas resources, where production costs are generally higher than those from mature onshore and legacy fields. For gas produced by state-run ONGC and Oil India Ltd from their nomination fields, the government has notified an APM price of $11.22 per MMBtu for October.
The actual price remains capped at $7 per MMBtu, according to PPAC. Gas produced from new wells of ONGC and OIL in their nomination blocks is allowed a 10% premium over the prevailing APM gas price, subject to the applicable ceiling.