Gas Price Ceiling Slashed by 3% for Deepsea Fields

The price ceiling for natural gas produced from deepsea and difficult fields, managed by Reliance and BP, is reduced by 3% to USD 9.72 per MMBtu for six months from October. Legacy field gas prices remain at USD 6.75 per MMBtu. Different pricing formulas apply based on field types.

The ceiling price for natural gas produced by Reliance Industries and BP Plc from deepsea and challenging fields has been reduced by 3% to USD 9.72 per MMBtu, effective for six months from October 1.

In contrast, gas rates for legacy fields remain steady at USD 6.75 per million British thermal units. The pricing scheme differs for gas from older legacy fields of national oil companies like ONGC and OIL compared to newer, more difficult-to-access fields like those in deepsea areas.

While prices for legacy field gas are updated monthly, ceiling prices for more challenging fields are revised biannually, on April 1 and October 1. For the period from October 1, 2025, to March 31, 2026, the ceiling for gas from deepwater, ultra deepwater, and HPHT areas will be USD 9.72 per MMBtu, as per the Oil Ministry's PPAC order.

(With inputs from agencies.)