RSS Feeds Forgot Password | Register
Oil And Gas | June 25, 2013
#36106

Experts suggest govt to liberalise pricing regime

Experts opine that the government must incentivise private companies to produce more natural gas by giving them freedom to fix market-linked price for the fuel.

   

The liberal pricing regime in the US allowed companies to invest in new technologies in the oil and gas sector. The abundance of shale rocks in the American continent translated into such a huge supply of natural gas that prices crashed below $2.

   

If the US could achieve this, there is no reason why India cannot offer more incentives for energy companies to change the gas landscape of the country — to make the resource abundant and reasonably priced, experts feel.

   

In the US, exploration companies saw a huge incentive in deploying risk capital in oil and gas exploration as well as developing new sources like extracting natural gas trapped in shale rock formations.

   

Industry observers feel that India's gas production has almost stagnated for a decade, barring the surge owing to new production from Reliance's D-6 block, because of restrictive pricing policy.

   

Consequently, the country's LNG imports spiked from barely a quarter of a tonne in 2003-04 to more than 10 million tonne in 2011-12.

   

India has abundant gas reserves but these are located in deep-sea fields, which throw enormous technological and extraction challenges like very high temperature and pressure.

Advertise Here [670 W x 90 H pixels]
Subscribe Project Reporter
  • Sector News

  • Latest News

  • 20 Dec 2014

    NMRC finalises 21 station for Greater Noida metro project

    read more
  • 16 Dec 2014

    Centre approves proposal to ensure quick transfer of land owned by government departments and PSUs for metro rail projects

    read more
  • 05 Dec 2014

    IRB Infrastructure gets provision certificate for Pathankot Amritsar BOT Project

    read more
  • 05 Dec 2014

    MMRDA approves two metro corridor project for Mumbai

    read more
  • 05 Dec 2014

    GOI gives nod to monorail project in Chennai

    read more
  • 18 Nov 2014

    Telangana government plans to take up road development in a big way

    read more
  • 04 Jan 2015

    PM stresses on improving quality of urban governance...

    read more
  • 04 Jan 2015

    Government to build industrial corridors and smart cities...

    read more
  • 04 Jan 2015

    AP to seek Rs 2,000 crore under Swachh Bharat scheme...

    read more
  • 04 Jan 2015

    BHEL gets 1x800 MW Kothagudem power project...

    read more
  • 04 Jan 2015

    BHEL, HSL and Midhani comes together to bid for submarine project...

    read more
  • 04 Jan 2015

    Develop new airports in Arunachal Pradesh: Thangwang Wangham...

    read more
|
Advertise Here [728 W x 90 H pixels]