OIL & GAS

Govt allows Reliance, others to sell gas to affiliates; marketing freedom to benefit Cairn, Focus

In a major boost to firms such as Reliance Industries, the government on Wednesday allowed affiliate companies to buy gas produced from non-regulated fields as part of giving complete marketing freedom.

The government between 2016 and 2019 gave pricing freedom for all fields except those given to state-owned Oil and Natural Gas Corp (ONGC) and Oil India Ltd (OIL) on a nomination basis.

But, there were restrictions on marketing including a ban on affiliates of producers buying the fuel and in some cases, a state nominee being mandated to offtake the gas. This restricted competition kept prices artificially low.

Source
ET Energy World
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