India deepwater gas ceiling raised to $9.89/MMBtu; legacy field APM cap held at $7
· Business · The Hindu, LiveMint, Zee News
The government has increased the ceiling price for natural gas from difficult fields such as the KG-D6 block to $9.89 per million British thermal units for the six-month period from October 1, 2026, to March 31, 2027, up from $8.90 previously. The administered price mechanism (APM) ceiling for legacy fields of state-run ONGC and OIL remains unchanged at $7 per MMBtu. Gas from deepwater, ultra-deepwater and high-pressure, high-temperature discoveries enjoys marketing freedom but is subject to the government-notified ceiling. The higher price could provide relief to producers developing India's technically challenging offshore gas resources, where production costs are generally higher.
Why it matters
The price increase directly affects producers developing challenging offshore gas fields, potentially easing cost pressures for Reliance Industries and BP's KG-D6 operations, while the unchanged $7 APM cap continues to prioritize city gas distribution, fertiliser and power sectors that rely on legacy field supplies.
Read the original report — The Hindu
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