https://indianmasterminds.com

ADVERTISEMENT
ADVERTISEMENT

Government Approves 20% Premium for Gas from New ONGC and OIL Wells

This decision, announced on Monday, is expected to enhance the viability of new gas development projects and increase production from legacy fields.
Indian Masterminds Stories

In a significant development for India’s energy sector, the Ministry of Petroleum and Natural Gas (MOP&NG) has authorized the sale of natural gas produced from new wells by Oil & Natural Gas Corporation (ONGC) and Oil India Limited (OIL) at a 20 percent premium over the Administered Price Mechanism (APM) price. This decision, announced on Monday, is expected to enhance the viability of new gas development projects and increase production from legacy fields.

Details of the New Pricing Regime

Under the existing gas pricing structure, domestic gas from ONGC and OIL’s legacy fields is priced at 10 percent of the prevailing price of Indian crude oil, capped at USD 6.5 per Metric Million British Thermal Unit (mmBtu). In contrast, gas produced from difficult or deep-sea fields is priced bi-annually, with the current rate set at USD 9.87 per mmBtu for the period starting April 1.

With the new guidelines, gas from newly developed wells or well interventions in ONGC and OIL’s nominated legacy fields will be priced at a 20 percent premium over the APM price. This adjustment means the new gas price will be 12 percent of the Indian crude basket price.

Impact on Gas Development Projects

ONGC has welcomed this change, stating that the enhanced price will support the viability of new gas projects, particularly those in challenging areas requiring substantial investment. The company anticipates that this will lead to increased production and bolster investment capacity for development projects.

ONGC has recently approved several major projects, including the Daman Upside Development project in Mumbai High at an estimated cost of Rs 7,800 crore, and the Integrated Development of four Contract Areas under DSF-II, costing approximately Rs 6,000 crore. These projects aim to significantly boost domestic gas production, with peak production targets of around 5 MMSCMD and 4 MMSCMD, respectively.

Alignment with National Energy Goals

The policy decision aligns with India’s national energy strategy to increase the share of natural gas in the energy mix from 6 percent to 15 percent by 2030. Domestic gas is primarily allocated to fertilizer, city gas distribution (CGD) companies, and power plants, making these developments crucial for meeting national energy needs and sustainability goals.

The new pricing structure is expected to incentivize further exploration and production activities, supporting the country’s broader objectives of energy security and economic growth.


Indian Masterminds Stories
ADVERTISEMENT
ADVERTISEMENT
Related Stories
ADVERTISEMENT
ADVERTISEMENT
NEWS
Himachal Pradesh Police1
Himachal DGP Disc Award List Withdrawn Hours After Announcement Amid Leadership Transition
MP Police
MP Police Shake-Up: 10 IPS Officers Transferred, CM Mohan Yadav Acts Swiftly After Public Incidents
IRSSE (Indian Railway Service of Signal Engineers) officer
IRSSE Gaurav Govil Debarred from Central Deputation for 5 Years Over Non-Compliance with CVO Appointment
Delhi High Court-resized-DelhiHC
Faith vs Discipline: Delhi HC Backs Army in Termination of Officer, Upholds Dismissal For Refusing Religious Parade Participation
IRS Officer Indian revenue Services
Senior IRS Officer Caught in Bribery Case: ₹25 Lakh Seized at Mohali Residence, ₹45 Lakh Demanded – Know the Full Story
PNB Housing Finanace
PNB Housing Finance Elevates Bhavya Taneja as Chief Marketing Officer (CMO) - Know More About Him
Air Marshal Jasvir Singh Mann
Air Marshal Jasvir Singh Mann Takes Over as Senior Air Staff Officer, Western Air Command - Know More About Him
Rajgir Sports
Bihar’s Mega Sports Push: Playgrounds, Stadiums & Talent Hunt Transform State; Over 50 Lakh Students Join
ADVERTISEMENT
ADVERTISEMENT
Videos
IAS Tushar G Nikhare
Modernising Governance: A Digital Transformation in Gangtok
IMG-20250523-WA0036
Abhishek Singh's SECRET: Vipassana, Anthropology & Smart Answer Writing | Video Interview 
Madhav Agarwal UPSC
From Gwalior to the Top 20: What Drove Finance Pro Madhav Agarwal to Crack UPSC CSE 2024 with AIR 16? | Exclusive
ADVERTISEMENT
UPSC Stories
ANUBHAV SINGH UPSC IFS 2024
9 Years, 8 Attempts, 7 Failures: How Anubhav Singh Cracked UPSC IFS 2024 with AIR 3 Against All Odds | Exclusive
Anubhav Singh’s inspiring journey to UPSC IFS Rank 3 showcases relentless perseverance, strategic preparation,...
Jogender Sihag
“I Cleared UPSC, But My Grandfather isn’t Here to Hear it,” Jogender Sihag, AIR 521, UPSC CSE 2024
"Life is short; make the most of it, whether in civil service or any other field. Just have a clear vision...
WhatsApp Image 2025-05-28 at 18.56
Didn’t Clear UPSC But Found Something Greater: A Story That Will Change How You See Success
She left a top finance job for UPSC, did not clear but built a thriving wellness brand instead. Veda's...
Social Media
parveen kaswan elephant
Elephant Outsmarts Electric Fence! IFS Parveen Kaswan Shares Incredible Video!
In the now-viral 51-second clip, the intelligent giant approaches a wooden pole supporting high-voltage...
UPSC Latest IAS IPS IFS
UPSC CSE Prelims 2025 Tomorrow: ICLS Officer Altap Shaikh Shares Last-Minute Motivation for Aspirants
His five-post thread offers encouragement, practical advice, and emotional support - not just for those...
Anupam Sharma IFS
#BoycottTurkey: IFS Officer Anupam Sharma Sparks Nationalist Call to Action
IFS Sharma urged citizens to avoid Turkish agricultural imports
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
Latest
Himachal Pradesh Police1
Himachal DGP Disc Award List Withdrawn Hours After Announcement Amid Leadership Transition
MP Police
MP Police Shake-Up: 10 IPS Officers Transferred, CM Mohan Yadav Acts Swiftly After Public Incidents
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
Videos
IAS Tushar G Nikhare
IMG-20250523-WA0036
Madhav Agarwal UPSC
ADVERTISEMENT
ADVERTISEMENT