The Ministry of Petroleum and Natural Gas (MoPNG) has completed an inter- ministerial consultation on the report submitted by Kirit Parikh on the natural gas pricing formula.
Besides, the ministry is preparing the final cabinet note based on the report to be sent to project management office (PMO) and cabinet secretariat to seek cabinet’s approval to implement the policy.
The committee has recommended setting a floor price of $4 per mmbtu (million British thermal units) and ceiling price of $6.5 per mmbtu for gas produced from old legacy fields, with an option to increase the ceiling price by $ 0.5 per mmbtu every year and ushering in of fully market-determined rates by January 2027.
The panel has also suggested linking the price of gas produced by state-owned firms from fields given to them on a nomination basis to imported crude oil prices.