The government has made changes to how natural gas prices are set for certain gas producers. Now, ONGC and Oil India Limited will get a higher price for gas from new wells or improved wells in their existing fields. They’ll get 20% more than the regular price, which is good news for these companies.
This new pricing policy will help ONGC make more money from challenging gas projects that need lots of money and advanced technology. It gives them a better chance to invest in risky but important projects.
ONGC is already putting this to use. They’ve approved a big project called Daman Upside Development in the Mumbai High area, which will cost about 7,800 crore rupees (about 95.6 million USD). This project should produce a lot more natural gas for India.
They’ve also given the go-ahead for another project to develop four areas under a special government scheme. This one will cost around 6,000 crore rupees (about 73.2 million USD) and will also boost gas production significantly.
These moves fit India’s big plan to increase the country’s use of natural gas. The government wants to raise natural gas use from 6% to 15% of India’s total energy mix by 2030. These new projects and pricing policies should help reach that goal by encouraging more gas production within India.
