Commodities
India Raises Natural Gas Price Ceiling to $9.89 per MMBtu
The Indian government has updated its pricing policy for natural gas, raising the ceiling price for challenging fields from $8.90 to $9.89 per million British thermal units (MMBtu). This increase will take effect on October 1 and remain in place until March 31, 2027.
The higher ceiling is expected to provide some relief to producers developing India's more technically challenging offshore gas resources. These fields have higher production costs compared to mature onshore and legacy fields.
Gas produced from the KG-D6 block of Reliance Industries and BP will now be eligible for the increased price, while ONGC and Oil India Ltd's production remains capped at $7 per MMBtu.