Natural Gas BP India Head Calls for Pricing Freedom for Indian Natural Gas Production
BP's Indian head Sashi Mukundan calls for market determined prices for the domestic natural gas production. Currently, Indian gas producers receive a fixed price, set by the government.
New Dehli/India – Market determined prices are, according to Sashi Mukundan, head of BP's Indian operations, a must for the development of future projects in the country. Since gas from domestic production has to be sold at a fixed price, it is significantly cheaper (by about four times) than imports.
Mukundan told the press that current investment decisions depend on clarity on gas pricings, refering to the 30 percent stake that BP holds in the Reliance Industries operated D6 field in the Gulf of Benghal. He also warned policy makers that, without new investments in domestic oil and gas operations, the country's dependency on imports could go up to 47 percent of its gas consumption.
The price for gas from the D6 field is currently fixed at US $ 4.20 for domestic customers.
More about BP in India? See: 'BP Explains New Strategy For Indian Offshore Gasfields'