Indian government approves 20% premium for new ONGC natural gas production to boost energy mix from 6% to 15% by 2030.

The Indian government has approved a 20% premium over the regulated price for natural gas produced from new wells by state-owned Oil and Natural Gas Corporation (ONGC). The new premium aims to make new gas development projects viable, help ONGC increase natural gas production from challenging areas, and align with India's vision of raising the natural gas share in its energy mix from 6% to 15% by 2030. This decision follows the adoption of pricing formulas for gas production last year, which determined that gas from new wells, even within legacy fields, would receive a 20% premium over the APM price.

August 12, 2024
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