India Raises Deepwater Gas Price Ceiling to $9.89 per MMBtu
The Indian government has increased the ceiling price for natural gas produced from deepwater, ultra-deepwater, and high-pressure, high-temperature fields to $9.89 per million British thermal units (MMBtu). This revised price will be in effect from October 1, 2026, to March 31, 2027.
The decision aims to provide relief to producers operating in technically challenging gas blocks, including the Reliance Industries-BP's KG-D6 project. The government has raised the ceiling price by $0.99 per MMBtu compared to the previous rate of $8.90 per MMBtu.
Gas produced from these difficult fields enjoys marketing and pricing freedom under the government's policy framework, but the price remains subject to a ceiling notified by the government. The increase is expected to support producers developing offshore gas resources, where exploration and production costs are considerably higher than those associated with mature onshore and legacy fields.