UK major BP Plc’s India unit has made a strong pitch for market determined prices for natural gas. Most of gas discoveries in India are unviable at the current rate of $4.2, says the company.
Writing as co-chairman of CII’s National Committee on Hydrocarbons, Sashi Mukundan explained the head of Parliament Standing Committee on Finance, Yashwant Sinha that 27 trillion cubic feet of discovered gas resources or 9 fields of the size of Reliance Industries’ KG-D6 fields, await being put on production.
He said that the very poor rate of conversion of discoveries into production is due to the fact that the prevailing price of gas makes most of these discoveries unviable, he wrote. India, which is a largely gas-based geological province, has been curbing investments by mandating sub-market prices, he says.