Lewes, DE -- (SBWIRE) -- 07/16/2014 -- India continues to struggle with increasing its oil and gas output at a rate complementary to growing domestic demand. The outlook for gas is more positive than oil, though major production increases remain highly dependent on an alteration of the gas formula. We were expecting the implementation of a higher domestic natural gas price from April 1 2014. However, it was delayed due to the change in government, with the stance of the BJP with regards to implementing the change unclear. This has the potential to significantly reduce our gas production forecasts, as it removes incentive to invest in higher cost projects. The main trends and developments we highlight for the Indian oil and gas sector are:
A lack of clarity from the BJP with regards to the implementation of the Rangarajan gas price formula puts considerable downside risk on our natural gas forecasts. We believe if the gas price increase - which was due to rise from USD4.2/mnBTU to USD8.3/mnBTU on April 1 - is not implemented, proposed investment in the KG basin will not go ahead. If KG basin projects are delayed or cancelled, this could see as much as 20-30bcm of gas not brought onstream by 2018.
Spanning over 185 pages, “India Oil and Gas Report Q3 2014” report covering the Industry Forecast, Market Overview, Company Profile and Appendix.
See Table of contents & Purchase this publication at: http://www.marketresearchreports.com/business-monitor-international/india-oil-and-gas-report-q3-2014
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