Clean targets: Industry wants gas pricing freedom to become universal

Industry wants the move allowing free pricing for new fields to become universal to meet clean energy targets

In early October, the government came up with a new model offering marketing and pricing freedom to natural gas producers in India, clearing a standardised e-bidding process for price discovery from new production areas and high-pressure, high-temperature fields. This was a significant modification of the administered pricing mechanism that has prevailed in the gas market for years.
 

This liberalised platform for price discovery will apply to new production areas for which the field development plan (FDP) received approvals after February 2019. This is expected to boost gas production of companies such as Oil and Natural Gas Corporation (ONGC), Mukesh Ambani-led