Companies

BP favours free gas pricing regime

Richa Mishra Vishwanath Kulkarni New Delhi | Updated on March 12, 2018

Shashi Mukundan

BP says that clarity in gas pricing is vital for development of the next wave of projects in India. As the BP-Reliance Industries partnership completes sixth months, the British firm believes that a forward looking gas policy framework with closer integration to global energy markets and allowing marketing freedom will help future projects to come on-stream.

Currently, the gas price in India ranges from $4.2/mmBtu to $16/mmBtu. The Reliance Industries-operated D6 block gas is available at $4.2/mmBtu (landfall point).

Mr Sashi Mukundan, Country Head, India, BP Group, said that there is a need to make a predictable price regime as envisaged in the production sharing contract. In other words, BP is seeking a gas pricing regime which is market determined that allows flexibility in price movements.

BP’s chief economist, Mr Christof Ruhl, releasing BP’s Energy Outlook 2030 said that there is a need to create competition, which will come in if there is marketing freedom. He stressed that regulatory environment should be so that it enables competition and avoids monopolies.

Published on February 27, 2012

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