India's Natural Gas sector is at the crossroads. Production from newly discovered fields is set to match and eventually exceed production from mature and declining fields posing a challenge for the Administered Price Mechanism [APM] which has hitherto subsidised the cost structure of gas consuming segments in India.
India’s Natural Gas sector is at the crossroads. Production from newly discovered fields is set to match and eventually exceed production from mature and declining fields posing a challenge for the Administered Price Mechanism
which has hitherto subsidised the cost structure of gas consuming segments in India. Investments in new pipelines ning the entire nation are hastening the need for policy assurances on availability, access and affordability. Indian LNG imports are about to be exposed to the vagaries of the international LNG market. A new locus of authority in the form of an independent oil & gas Regulator is in place with a mandate to bring in competition in all segments of the gas value chain. In this background, the Observer Research Foundation and the India Energy Forum held a one day conference on ‘India’s Changing Gas Scenario: New Imperatives’ on 29 November 2007 highlighting expectations and challenges in the sector. This brief note captures key insights from the deliberations at the conference.
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