. Recently, Natural Gas Marketing Reforms were approved by the government of India. These were introduced with the objective to prescribe standard procedure to discover the market price of gas through a transparent and competitive e-bidding process. Globally, natural gas has been gaining traction as a key alternative and an ideal fuel to support the energy shift in favour of cleaner and greener energy sources. India too is on its path to become a sustainable development and has set a vision to become a gas-based economy.
Almost 80 per cent of Indian domestic gas is produced from blocks given on nomination basis to national oil companies. So, who is going to benefit? The previous regime will need to be relooked at so that national oil companies like ONGC do not sell at a loss.
Currently, the total domestic production is around 75 mmscmd (million standard cubic metres a day) and imports, 85 mmscmd. Gas demand is directly linked to supply, so the current demand is about 160 mmscmd. So, basically advantage Reliance Industries-BP Joint Venture in Krishna-Godavari Basin off the Andhra Pradesh Coast, Cairn Oil & Gas’ (Vedanta Ltd) Barmer fields in Rajasthan, and ONGC in the Krishna-Godavari Basin, who are raring to go.
If one goes by what critics have to say, it is symbolic right now. It will take a while before the market matures. Yes, the e-bidding platform will make decision-making quicker for the buyers, but no producer will like day-to-day pricing.