In a big boost for Reliance Industries Ltd, Cairn India and state-run ONGC, the government on Wednesday approved an electronic auction-based gas marketing regime that allows affiliates of domestic producers to bid for output from new discoveries of the parent company.
The norm will end ambiguity in contracts across auction regimes (NELP, HELP, OLAP) and allow transparent discovery of price, oil minister Dharmendra Pradhan said after the Cabinet approved the guideline.
He said the move would clear the way for an additional 40 mmscmd (million metric standard cubic meters per day) of supplies, roughly 8-9 days of CNG consumption in Delhi-NCR, from new discoveries and increase ease of doing business.
The standardised policy and a panel of digital trading platforms, both in the private and public sectors would help discover an Indian benchmark gas price and allow domestic producers to compete with imported LNG (liquefied natural gas).
Existing CNG and PNG services will not be affected as the government will continue to control marketing and pricing of gas from old fields, which feed city gas projects, given to ONGC and OIL without bidding. But