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Wednesday, November 20, 2019

No Proposal under Consideration to Make Assessment for Revising the Domestic Prices of Natural Gas Pricing Formula

No Proposal under Consideration to Make Assessment for Revising the Domestic Prices of Natural Gas Pricing Formula





At present, no proposal is under consideration of Government to make assessment for revising the domestic natural gas pricing formula notified on October 25th, 2014. The domestic natural gas pricing guidelines, 2014 were approved by the Government after detailed deliberation, including

Rangarajan Committee Report and Report of Committee of Secretaries on this subject matter and inter-ministerial consultation were done.

The domestic natural gas pricing guidelines, 2014 is formula based and has been worked out considering the volumes and prices prevailing at major international markets such as Henry Hub, National Balancing Point, Alberta and Russia.

The formula has been finalized considering the requirements of producing and consuming sectors, and had tried to make a fine balance between their interests. The prices are notified every six month in accordance with said guidelines.

To incentivize additional production of natural gas, Government vide Notification dated March 21st,  2016 granted marketing including pricing freedom on natural gas produced from Deep water, Ultra deep water and High Pressure-High Temperature areas subject to ceiling price based on landed price of alternate fuels. Further, Government has also granted marketing and pricing freedom for sale of natural gas under Discovered Small Field Policy, Hydrocarbon Exploration and Licensing Policy and Coal Bed Methane (CBM) contracts. In addition, Government vide Notification dated February 28th, 2019 granted marketing and pricing freedom to those new gas discoveries whose Field Development Plan (FDP) will be approved for the first time after the Notification.

This Information was given by the Union Minister for Petroleum and Natural Gas Shri Dharmendra Pradhan in a written reply in the Rajya Sabha today.
TELUGU VERSION- Quickandhra.com