Related Articles
Forward article link
Share PDF with colleagues

India cuts gas prices by 18%

The well-head gas price has dropped to $3.82/m British thermal units (Btu) which could discourage investment in the fields

India has cut the well-head gas price by 18% to $3.82/m British thermal units (Btu), squeezing producers such as Oil & Natural Gas Corporation (ONGC), Oil India and Reliance Industries. The move may end up discouraging investments in new fields, which would eventually lead to higher dependence on costlier imports as lower prices boost demand, warned ratings agency Moody’s. Low prices benefit power producers and fertilizer makers, but may deter exploration companies from investing and increasing output, essential for Prime Minister Narendra Modi’s target of cutting India’s dependence on imported energy to 50% by 2030 from 80% now. India imports 36% of its gas needs. But "imports will con

Also in this section
Caspian contagion risks
17 August 2017
A banking crisis is a short-term risk in a region bursting with energy developments
Nervy times in Kenya's elections
11 August 2017
Oil companies will be hoping that the relatively calm passing of the country's presidential elections will pave the way for faster progress towards pipeline exports
Rosneft vs Sistema brings echoes of Yukos affair
8 August 2017
For long-term investors in Russia, the nightmare unfolding for the privately held conglomerate Sistema gives them a distinct sense of déjà-vu