Fortune India - 4/3/197 Mar 2019 09:13
Come on Oilex and GSPC - what are we waiting for?
"A move is also on to set up a domestic gas hub where both LNG and domestically-produced gas will be traded by buyers and sellers to ensure a market-determined price of gas in India. So, gas prices will no longer be set by the government or through a formula based on prices in other gas markets.
To ensure that even non-pipeline owners have open access to gas transmission through the national pipeline network, the regulator has stringently upheld the common carrier and contract carrier policy, which allows third parties to access the network. In fact, in 2017 GAIL saw a 12% increase in third-party use of pipelines, and serviced all the 138 requests it got through the year. The government, too, has stepped in by asking GAIL, the largest pipeline owner and gas marketer,to unbundle its two businesses to avoid any conflict of interest."
"However, the biggest development in the last couple of years is the development of small-scale LNG players since it reduces the time gap between the inception and the start of commercial operations. What has helped matters is the government’s decision to auction 44 discovered small and marginal fields in February 2016 and another 60 in 2018. While these fields were discovered some years ago by ONGC and Oil India, they were not considered viable to develop because of the limited quantity of oil and gas.Today, with cryogenic trucks at their disposal and CGD becoming a business, LNG players can actually take the gas to the doorstep of underutilised gas-starved industries, store it and use it when needed. It is also called providing LNG at the doorstep. This is why even these small unused fields now seem to have become economically viable."
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