India Gas Price Hike to Bring to Production 12 Tcf

Recent move by Indian government to hike natural gas price will help bring to production at least 12 trillion cubic feet of gas, Press trust of India (PTI) said citing a report by Bank of America Merrill Lynch.

This "new policy will support several new developments to progress through and beyond their final investment decisions," it said in a report titled "Gas price reforms to unlock Indian gas reserves", Press trust of India reported.

India has been struggling to meet domestic gas demand due to declining output, no external gas pipelines and LNG imports priced at more than two-and-half times of the old USD 4.2 regulated gas price, PTI quoted the report as saying.

"The new policy should support several new developments including about 12 Tcf of discovered but currently undeveloped gas (not commercial under the old pricing regime)," the report said.