Bullish
India raises deepwater gas price ceiling to $9.89/MMBtu, benefiting Reliance-BP's KG-D6
The Indian government has increased the ceiling price for natural gas produced from deepwater, ultra-deepwater, and high-pressure, high-temperature fields to $9.89 per million British thermal units (MMBtu) for the period from October 1, 2026, to March 31, 2027. This adjustment is expected to provide relief to producers operating in challenging offshore gas blocks, such as Reliance Industries and BP's KG-D6 project.
Key points
- The Indian government's decision to raise the gas price ceiling to $9.89/MMBtu is anticipated to support producers developing offshore gas resources, where production costs are generally higher than those from mature onshore and legacy fields.
- The ceiling price for gas produced from the nomination fields of state-run ONGC and Oil India Ltd remains unchanged at $7 per MMBtu, with new wells eligible for a 10% premium.
- The APM gas price for October has been notified at $11.22 per MMBtu, but the actual realization for gas produced from ONGC and OIL’s legacy fields will continue to be capped at $7 per MMBtu under the existing pricing regime.
Sources
- Natural gas price ceiling raised to $9.89/MMBtu for difficult fields from OctoberMoneycontrol · October 4, 2026
- Govt raises ceiling price of gas from deepwater fields to $9.89/mmBtutennews.in · October 4, 2026
- India hikes deepwater gas price ceiling to $9.89 for difficult fields; Reliance-BP’s KG-D6 to benefitLiveMint · October 4, 2026
- Govt raises deepwater gas ceiling price to $9.89 per mmBtuNewKerala.com · October 4, 2026
AI-generated from public news sources. Not financial advice.
