India Business Journal - New norms give gas-pricing freedom

INDUSTRY

New norms give gas-pricing freedom

IBJ Bureau
Dec 31, 2020

Reliance Industries (RIL) and other producers of natural gas will no longer need the government’s approval for gas price, if it is arrived at using new guidelines for discovery of market price. The Union Ministry of Petroleum and Natural Gas recently notified guidelines for discovery of market prices for domestically-produced natural gas through e-bidding. The government has since 2017 given pricing freedom for natural gas produced from all fields other than the old fields of State-owned ONGC and Oil India in nomination blocks. Reliance Industries-BP combine and ONGC (for non-nomination blocks) have been auctioning gas to users. They would typically devise a formula and seek bids from users.