India Raises Ceiling Price of Deepwater Gas to $9.89/MMBtu

The Indian government has increased the ceiling price of natural gas produced from deepwater fields to $9.89 per million British thermal units (MMBtu) for the six-month period beginning October 1, 2026.

This move is expected to provide relief to producers operating in technically challenging gas blocks such as Reliance Industries-BP's KG-D6 project, where exploration and production costs are considerably higher than those associated with mature onshore and legacy fields.

The revised ceiling price, up from $8.90 per MMBtu, will remain effective from October 1, 2026 to March 31, 2027, according to a notification issued by the Petroleum Planning and Analysis Cell (PPAC) under the Ministry of Petroleum and Natural Gas.