The Cabinet decision reiterating revision and near doubling, from April next, the price of domestic natural gas is timely. The move would better align relative prices, coagulate much-needed funds in the high-risk upstream hydrocarbon sector and shore up investor sentiments. In the promising Krishna-Godavari basin in the eastern offshore, Reliance Industries (RIL) has had significant production shortfall for over three years now, and it would reportedly need to furnish a bank guarantee to counter perceptions that it is hoarding gas at its operational blocks. The revised gas price would be as per the Rangarajan committee formula, benchmarked to the going average price of what producers get elsewhere in the main markets. Continue reading Revised Natural Gas Pricing Better for Indian Economy →