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Policy & Regulation

India gas price hike will not boost output soon

Despite gas pricing reforms coming into effect from 1 April, Indian gas production is unlikely to rise on an annual basis before 2016 Despite gas pricing reforms coming into effect from 1 April, Indian gas production is unlikely to rise on an annual basis before 2016.
By Abhishek Kumar 19 March 2014 Asia Pacific / Exploration & Production 0 24561
KG-D6 onshore gas terminal. (Niko Resources)

The Indian government will implement gas price reforms from 1 April to lure investment into the country’s gas sector and boost domestic production, which has declined sharply in recent years.

Private upstream companies in India have criticised the government for the low prices offered to domestic producers, which they say has discouraged investment. For instance, one of the reasons cited for the fall in production from the KG-D6 block, located in the Krishna-Godavari Basin, is the $4.2/MMBtu price offered to producers such as Reliance Industries. 

The government...