Norms relaxed for small, isolated gas fields in northeast

New Delhi, Dec 28 (IANS) Rules for selling natural gas produced from small, isolated fields in northeast India have been further relaxed to extend the time stipulation for offtake by customers to one year from the date of readiness, an official statement said on Monday.

“The national oil companies (NOCs) have brought to the notice of the ministry that customers of northeast region are facing various difficulties in utilising the gas within 90 days and have been requesting for longer lead time for monetisation of gas from small and isolated fields,” said a petroleum ministry release here said.

“Considering the difficulties of Northeast customers, the government has decided to increase the period of 90 days for off-take of gas from the date or readiness indicated by the NOCs to one year in respect of small and isolated fields located in the Northeast region,” it added.

The petroleum ministry had in July 2013 permitted pricing freedom for gas produced from small, isolated fields and given marketing freedom by imposing no obligation of seeking customers only from the fertiliser and power sectors, with a stipulation, however, that only those customers who can take supply within 90 days be sold the gas.

The policy permits producers from such fields to sell gas at market rates by inviting competitive bids from prospective consumers.

The government has effected an 18-percent cut in domestic prices of natural gas, from $4.66 per unit to $3.82 per unit for six months starting October 1.

Natural gas prices in India are set by taking a volume-weighted annual average of that prevailing in the US, Britain, Canada and Russia. Prices are calculated on the trailing 12 month data with a lag of one quarter.

Leave a Reply

Please enter your comment!

The opinions, views, and thoughts expressed by the readers and those providing comments are theirs alone and do not reflect the opinions of or any employee thereof. is not responsible for the accuracy of any of the information supplied by the readers. Responsibility for the content of comments belongs to the commenter alone.  

We request the readers to refrain from posting defamatory, inflammatory comments and not indulge in personal attacks. However, it is obligatory on the part of to provide the IP address and other details of senders of such comments to the concerned authorities upon their request.

Hence we request all our readers to help us to delete comments that do not follow these guidelines by informing us at Lets work together to keep the comments clean and worthful, thereby make a difference in the community.

Please enter your name here