Govt Cuts Domestic Natural Gas Prices to $7.29 Per MmBtu for Dec
OIL & GAS

Govt Cuts Domestic Natural Gas Prices to $7.29 Per MmBtu for Dec

The oil ministry announced in a notification that the price of domestic natural gas for December has been reduced to $7.29 per million metric British thermal units (mmBtu), down from $7.53 in the previous month. However, the domestic natural gas price will remain at $6.5 for the month, as per the formula used for the calculation of prices.

The notification stated that the price of domestic natural gas from December 1, 2024, to December 31, 2024, is set at $7.29/mmBtu on a gross calorific value (GCV) basis.

Under the new gas pricing mechanism, domestic gas prices are now subject to a floor and ceiling of $4 per mmBtu and $6.5 per mmBtu, respectively. The price had been $6.5 per mmBtu in November as well.

The price applies to natural gas produced from the legacy and oil fields of Oil and Natural Gas Corporation (ONGC) and Oil India (OIL). Under the new pricing regime, domestic gas pricing is linked to imported crude pricing, set at 10 per cent of the Indian crude basket. The prices are revised every month.

This pricing decision is part of India's on-going efforts to manage its natural gas sector effectively while balancing the needs of producers and consumers. The new price follows the guidelines set forth by the MoPNG's notification in April 2023, which established the framework for monthly price updates.

Key stakeholders, including the Directorate General of Hydrocarbons, ONGC, OIL, and GAIL, have been informed of the new pricing structure to ensure a coordinated approach in managing the country’s natural gas sector.

An expert explained that the new pricing reflects India’s efforts to align its energy policies with global standards, while supporting domestic production and ensuring fair pricing for all stakeholders. The government's monitoring of global energy markets, combined with its policy framework, aims to stabilise pricing and maintain growth in the country’s natural gas sector.

The oil ministry announced in a notification that the price of domestic natural gas for December has been reduced to $7.29 per million metric British thermal units (mmBtu), down from $7.53 in the previous month. However, the domestic natural gas price will remain at $6.5 for the month, as per the formula used for the calculation of prices. The notification stated that the price of domestic natural gas from December 1, 2024, to December 31, 2024, is set at $7.29/mmBtu on a gross calorific value (GCV) basis. Under the new gas pricing mechanism, domestic gas prices are now subject to a floor and ceiling of $4 per mmBtu and $6.5 per mmBtu, respectively. The price had been $6.5 per mmBtu in November as well. The price applies to natural gas produced from the legacy and oil fields of Oil and Natural Gas Corporation (ONGC) and Oil India (OIL). Under the new pricing regime, domestic gas pricing is linked to imported crude pricing, set at 10 per cent of the Indian crude basket. The prices are revised every month. This pricing decision is part of India's on-going efforts to manage its natural gas sector effectively while balancing the needs of producers and consumers. The new price follows the guidelines set forth by the MoPNG's notification in April 2023, which established the framework for monthly price updates. Key stakeholders, including the Directorate General of Hydrocarbons, ONGC, OIL, and GAIL, have been informed of the new pricing structure to ensure a coordinated approach in managing the country’s natural gas sector. An expert explained that the new pricing reflects India’s efforts to align its energy policies with global standards, while supporting domestic production and ensuring fair pricing for all stakeholders. The government's monitoring of global energy markets, combined with its policy framework, aims to stabilise pricing and maintain growth in the country’s natural gas sector.

Next Story
Infrastructure Energy

Mizoram To Build Rs 139 Billion Pumped Storage Power Plant

Mizoram Chief Minister Lalduhoma on Friday announced plans to construct a 2,400 MW pumped storage hydroelectric power plant in Hnahthial district, marking a major step towards achieving energy self-sufficiency in the state. Addressing the Mizo Students’ Union general conference in Hnahthial town, the Chief Minister said the plant would be developed across the Darzo Nallah, a tributary of the Tuipui river. Once operational, the project is expected to play a pivotal role in meeting Mizoram’s rising electricity demand and reducing dependence on imported power. Officials from the State Power..

Next Story
Infrastructure Energy

Centre Plans Nationwide Opening Of Power Retail Market

India is preparing to open up its retail electricity market to private companies nationwide, effectively ending the long-standing monopoly of state-run power distributors in most regions, according to a draft bill released by the Union Power Ministry on Friday. The move will enable major private sector players — including Adani Enterprises, Tata Power, Torrent Power, and CESC — to expand their presence across the country’s electricity distribution landscape. A similar reform attempt in 2022 had faced strong opposition from state-run distribution companies (discoms), which currently dom..

Next Story
Infrastructure Energy

CEA Sets 100 GW Nuclear Target For India By 2047

In a landmark step marking its 52nd Foundation Day, the Central Electricity Authority (CEA) unveiled an ambitious roadmap to develop 100 gigawatts (GW) of nuclear power capacity by 2047, aligning with India’s long-term Net-Zero commitment and energy security objectives. The event, held at the Central Water Commission auditorium in New Delhi’s R.K. Puram, was attended by Pankaj Agarwal, Secretary, Ministry of Power, who served as the Chief Guest. The roadmap sets out a detailed plan to expand India’s nuclear capacity from its current level of approximately 8,180 MW as of early 2025, outl..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Talk to us?