The government plans to launch a natural gas trading hub by October, creating an Indian gas benchmark which will spark a surge in consumption of the cleaner-burning fuel.
Oil regulator PNGRB has sought bids to hire a consultant to help develop a regulatory framework for operationalising the gas trading/exchange hub.
“In order to further boost the consumption of natural gas in the country, Government is considering the establishment of a Gas Trading Hub / Exchange (GTHE), where natural gas can be traded, and supplied through a market-based mechanism instead of multiple formula driven prices,” PNGRB said in the tender floated for hiring the consultant.
Currently, the government fixes the price of the bulk of domestically produced natural gas. The rate, arrived at using price prevalent in gas-surplus nations of US, Canada, UK, and Russia, is USD 3.06 per million British thermal unit for six month period beginning April 1. Read More