The Government of India has announced a slight adjustment in the price ceiling for natural gas produced from difficult fields. For the upcoming six-month period, the price ceiling has been set at $10.04 per MMBTU, a marginal decrease from the previous ceiling of $10.16 per MMBTU. This price adjustment reflects the government’s ongoing efforts to regulate pricing structures in line with evolving market conditions while maintaining the financial viability of gas production from challenging fields.
This price ceiling primarily applies to natural gas extracted from deepwater, high-pressure, and high-temperature fields, as well as other technically difficult reserves. These fields typically require more advanced technology and higher operational costs, justifying the need for a special pricing mechanism to ensure continued exploration and production in these challenging areas.
The slight reduction in the price ceiling is part of the government’s strategy to balance the interests of both producers and consumers, promoting sustainability in the domestic natural gas sector. This move is expected to have minimal impact on the overall energy landscape while ensuring that critical investments in difficult fields remain attractive for operators.
For further details, interested parties can visit the Ministry of Petroleum and Natural Gas or the official PPAC website…