Do you think that the Government of India needs to revisit the gas pricing formula? Comment (200 Words)
Refer - Business Line
Enrich the answer from other sources, if the question demands.
IAS Parliament 2 years
KEY POINTS
· If India wants to make natural gas one of its major sources of fuel then it may need to take a relook at its existing domestic gas pricing mechanism.
· Today, gas price in the spot market is around $47 per mmBtu (gas is measured in million British thermal unit).
· There are two major drivers, one is European demand now shifting from Russian gas to LNG supplies, and which also impacts the Asian consumers.
· India’s gas price is determined at an average price of LNG imports into India and benchmark global gas rates.
· Total consumption in India is 175 million standard cubic metre a day (MMSCMD), of this 93 MMCMD is met through domestic production and 82 MMSCMD through LNG imports.
· Currently, India revises its domestically produced gas price on a half yearly basis based on a cocktail formula worked out considering the volumes and prices prevailing at major international markets such as Henry Hub, National Balancing Point, Alberta and Russia.
· The argument put forth is that the formula is based on markets which are either very matured or are themselves producers and not exactly India-sepecific.
· India has set the target to raise share of natural gas in energy mix to 15 per cent by 2030, and to attain this, the entire eco-system needs to be addressed.
K. V. A 2 years
Kindly review
IAS Parliament 2 years
Good attempt. Keep Writing.
Tapasvi 2 years
Kindly review
IAS Parliament 2 years
Good attempt. Keep Writing.
Aravind R 2 years
Kindly review this mam/sir
IAS Parliament 2 years
Good attempt. Keep Writing.
