The Petroleum Planning & Analysis Cell (PPAC), a body under the Ministry of Petroleum and Natural Gas (MoPNG), has announced the domestic natural gas price for July 2024. The price has been set at $8.24 per million British thermal units (mmbtu) on a Gross Calorific Value (GCV) basis. This decision, in accordance with MoPNG’s Notification No.L-12015/1/2022-GP-II dated 7th April 2023, aims to regulate pricing in India’s natural gas sector.
New rate effective from 1st July 2024 to 31st July 2024: In a recent notification, PPAC stated that the new rate would be effective from 1st July 2024 to 31st July 2024. The specified period allows for stability and consistency in the pricing of natural gas during that time frame. Along with the pricing announcement, a ceiling price of $6.50/mmbtu on a GCV basis has been set for gas produced by Oil and Natural Gas Corporation (ONGC) and Oil India Limited (OIL) from their nomination fields during the same period.
A balanced approach for profitability and affordability: PPAC believes that this pricing framework aligns with their ongoing efforts to streamline the natural gas market. By balancing both producer profitability and consumer affordability, the aim is to create a sustainable and fair pricing system. A senior official from PPAC commented, “This pricing framework aligns with our ongoing efforts to streamline the natural gas market, ensuring a balance between producer profitability and consumer affordability.”
Coordination among key stakeholders: To effectively manage India’s natural gas resources, key stakeholders including the Directorate General of Hydrocarbons (DGH), ONGC, OIL, and GAIL have been duly informed. A coordinated approach is emphasized to ensure the effective utilization and management of India’s natural gas resources. This step further reinforces India’s commitment to fostering a robust energy ecosystem that supports domestic production while maintaining equitable pricing across the sector.
India’s strategic vision for sustainable growth in the natural gas sector: The natural gas sector in India plays a crucial role in the country’s energy security strategy. With proactive measures aimed at enhancing production capacity and aligning with global energy standards, the government continues to demonstrate its strategic vision for sustainable growth in the natural gas market. The latest pricing announcement exemplifies India’s commitment to sustaining growth and stability in its natural gas market amidst evolving global dynamics. In conclusion, the establishment of the domestic natural gas price for July 2024 by PPAC represents a significant step towards regulating pricing in India’s natural gas sector. The balanced approach of considering both producer profitability and consumer affordability showcases the government’s commitment to fostering a robust energy ecosystem. With the involvement of key stakeholders and adherence to global energy standards, India continues to be a force in the global natural gas market.
