Natural gas producers such as Reliance Industries Limited will not require government’s approval for the gas price if it is arrived at using the new guidelines for the discovery of market price, as per the Ministry of Petroleum and Natural Gas. The ministry has recently notified guidelines for the discovery of market prices for domestically produced natural gas through e-bidding.
As per the notification, the companies shall design the tender/bid offer, including the eligibility criteria, bid parameters, evaluation criteria, tender fee, salient terms and conditions of Gas Sales Agreement and any other relevant information, etc., with a view to encourage wider participation from prospective buyers, promote competition and maximise the value of natural gas offered.
Oil and Natural Gas Corporation and Oil India Limited will also follow these guidelines for discovery of market price of natural gas from their fields wherever pricing and marketing freedom have been granted.