-
India introduces new measures to improve natural gas affordability and supply
India has announced significant changes to its domestic gas allocation policy to enhance the availability and affordability of natural gas.
Starting from the first quarter of fiscal 2026, allocations for compressed natural gas (CNG) and piped natural gas (PNG) will be made on a two-quarter advance basis.
The revamped policy includes new well gas (NWG) from the nomination fields of the state explorers Oil and Natural Gas Corporation (ONGC) and Oil India.
The forecasts provided by ONGC and Gail will supply visibility for city gas distribution (CGD) entities in advance, thereby improving planning and delivery efficiency.
Additionally, the auction-based allocation for NWG will be replaced with a quarterly pro-rata allocation to ensure a timely and reliable supply of natural gas.
GAIL will distribute NWG to CGD entities in proportion to their needs, in line with the current guidelines set by the Ministry of Petroleum and Natural Gas (MoPNG).Both administered pricing mechanisms (APM) gas and NWG prices are linked to Indian crude basket prices, calculated monthly. The government anticipates that this allocation strategy will make natural gas more affordable for CNG and PNG consumers, especially after a recent decline in crude prices.
The distribution of natural gas sold under the government-regulated APM has declined over the years because of reduced production at domestic wells, reported Reuters.
Share This
