Hyderabad, Jan 28 (PTI): The Union Ministry of Petroleum and Natural Gas will soon introduce a uniform gas price policy to ensure parity in the prices of the imported and the locally produced gas.

“I have worked out the policy, but don’t know whether it has to go to the Cabinet or not. The proposed policy will ensure one price for both the gas that is imported and that which is produced here,” Union Minister for Petroleum and Natural Gas M Veerappa Moily said here on Sunday.

High cost

Pointing out that imported gas costs high at present, he said: “The price depends on the country from where it is imported. In Qatar it is a little less ($18), other countries it is $21. Shale gas may work out very cheap. Now we are working towards parity (in price) between imported and domestic gas,” Moily said.
 
India might achieve self-sufficiency in gas by 2016-17, he added
“May be in June, two MMSCMD (metric million standard cubic metres per day) gas of ONGC will be available in India. In the meanwhile, we are clearing some of the projects...removing obstacles in the way to implement the New Exploration Licensing Policy (NELP) projects which will also help us to manage the situation,” the Minister said.

Untapped blocks

Referring to some 40 oil and gas blocks that haven’t been tapped, Moily said: “They have been approved under the NELP. And the contractors, including our own PSUs, have taken them. But subsequently, defence, environment and some other departments raised some objection and wanted the No-Objection Certificate withdrawn.

Nearly $13 billion has been invested in those projects... It will be very dangerous. Investors will be dissuaded. The 40 blocks issue is coming up before the Cabinet Committee on Investments on the 30th. It is left to the Cabinet to decide whether or not to clear them.”

Moily said his ministry has worked out the shale gas policy and it would come before the Cabinet any time.

On coal bed methane, the minister said the policy evolved in 1997 was now being revised.