India Raises Gas Price Ceiling to $9.89 Per MMBtu for Deepwater Fields

The Indian government has increased the ceiling price for natural gas produced from challenging fields to $9.89 per million British thermal units (MMBtu) for six months starting October 1, up from $8.90 previously.

This new price cap applies to deepwater, ultra-deepwater, and high-pressure, high-temperature discoveries in areas like the KG-D6 block of Reliance Industries and BP.

The higher ceiling could improve economics for producers operating in these challenging gas projects, including Reliance-BP's KG-D6.