Stories
Deep Sea Natural Gas Price Soars to $9.89/MMBtu!
C
CNBC Awaaz•04-10-2026, 14:55
Deep Sea Natural Gas Price Soars to $9.89/MMBtu!
- •The government has increased the maximum price of natural gas extracted from difficult and high-cost gas fields.
- •The price ceiling for gas from such fields is set at $9.89 per million British thermal units (MMBtu) from October 1, 2026, to March 31, 2027, up from $8.90.
- •This new ceiling applies to deepwater, ultra-deepwater, and high pressure-high temperature (HPHP) gas discoveries, exemplified by Reliance Industries and BP's KG-D6 block.
- •For gas from old or legacy fields of ONGC and Oil India Limited (OiL), the maximum price remains $7 per million British thermal units (MMBtu).
- •New well gas from ONGC and OIL's nomination blocks can fetch up to a 10 percent premium on the current APM price, capped at $7.70 per MMBtu.
Key Questions Answered
The maximum price for natural gas extracted from difficult and high-cost deep sea gas fields has been set at $9.89 per million British thermal units (MMBtu) from October 1, 2026, to March 31, 2027.
For gas extracted from old or legacy fields of public sector companies ONGC and Oil India Limited, the maximum price ceiling has been kept at $7 per million British thermal units (MMBtu).
The government allows a premium of up to 10 percent on the current APM price for gas extracted from new wells in ONGC and OIL nomination blocks, provided it remains within the set ceiling.
