• India sees natural gas oversupply as high prices deter buyers

    Once struggling for natural gas, India is experiencing an oversupply of gas in recent months as prices have shot through the roof. On account of high prices, customers in India have reduced gas buys, resulting in a surplus in the market.

    The government had hiked the price of natural gas by 40 percent for the second half of the current financial year i.e. from October 2022 to March 2023.

    The price of gas produced from old fields, which makes up for about two-thirds of all domestically-produced gas, was hiked to $8.57 per Metric Million British Thermal Unit (mmBtu) from $6.1 per mmBtu.

    Similarly, natural gas produced from discoveries in deep and ultra-deep water and high-pressure, high-temperature areas was hiked to $12.46 per mmBtu from $9.92. India is dependent on imports for roughly half of its natural gas needs while the other half is met through domestic production.

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