MoPNG caps trading margin on resale of gas from deep sea fields

The Ministry of Petroleum and Natural Gas (MoPNG) has issued a notification pertaining to the marketing and pricing freedom of gas produced from discoveries in deepwater, ultra-deepwater and high pressure, high te­mperature areas. As per the notification, bidders, including affiliates, participating in the e-bidding process of such gas will have to clearly specify whether they wish to purchase it for their own use as end-consumers (including for the use of their group entities) or as traders. Traders may resell the gas to another trader, or to an end-consumer. The overall trading margin for resale of gas to urea and liquefied petroleum gas (LPG) producers will be capped at the marketing margin rates previously notified by the government on November 24, 2015 (currently, Rs 200 per thousand standard cubic metres). For resale to other end-consumers or traders, the overall trading margin for resale will be the maximum standard marketing margin.