Friday 11 August 2023

Guidelines for Natural Gas Pricing

 

Guidelines for Natural Gas Pricing

Posted On: 10 AUG 2023 5:19PM by PIB Delhi

The Government has approved the revised domestic natural gas pricing guidelines vide gazette notification dated 07.04.2023 for gas produced from nomination fields of ONGC/OIL, New Exploration Licensing Policy (NELP) blocks and pre-NELP blocks, where Production Sharing Contract (PSC) provides for Government's approval of prices. The price of such natural gas shall be 10% of the monthly average of Indian Crude Basket and shall be notified on a monthly basis. For the gas produced by ONGC & OIL from their nomination blocks, the Administered Price Mechanism (APM) price shall be subject to a floor and a ceiling. Gas produced from new wells or well interventions in the nomination fields of ONGC & OIL, would be allowed a premium of 20% over the APM price. The reforms have led to significant decrease in prices of Piped Natural Gas (PNG) for households and Compressed Natural Gas (CNG) for transport.

The details and present status of natural gas prices notified by Petroleum Planning and Analysis Cell (PPAC) in accordance with revised domestic natural gas pricing guidelines dated 07.04.2023 are as under:

Period

Domestic Gas calculated price in US$/MMBTU

Domestic Gas calculated price for ONGC/OIL in US$/MMBTU

8 April 2023-30 April 2023

7.92

6.50

1 May 2023-31 May 2023

8.27

6.50

1 June 2023-30 June 2023

7.58

6.50

1 July 2023-31 July 2023

7.48

6.50

1 August 2023-31 August 2023

7.85

6.50

This information was given by the Minister of State in the Ministry of Petroleum & Natural Gas, Shri Rameswar Teli, in a written reply in the Lok Sabha today.

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