Govt grants pricing, marketing leeway to gas producers, allows e-bidding
The government on Wednesday came up with a new model of giving marketing and pricing freedom to natural gas producers in India, with the Union Cabinet clearing a standardised e-bidding process for price discovery from new production areas and high-pressure, high-temperature fields.
Through the new platform, market players and consumers will be discovering prices for new production areas whose field development plan (FDP) got clearances after February 2019.
According to industry experts, the move is expected to help major producers like Oil and Natural Gas Corporation (ONGC), Mukesh Ambani-led Reliance Industries, and Vedanta’s Cairn Oil and Gas. The new mechanism will lead to immediate production of at least 40 million metric standard cubic meter per day (mmscmd) of natural gas from the Krishna Godawari basin only.
