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.