India will deregulate gas prices for locally extracted natural gas and allow producers marketing autonomy during auctions for new exploration blocks, Bloomberg reports.
A notice on the Indian Oil Ministry’s website describes a proposed new revenue sharing model, to replace the current profit-sharing model.
The goal of the new policy is to “provide pricing and marketing freedom for natural gas to be produced from the areas to be awarded under the new contractual and fiscal regime in order to encourage production from these areas.” Government control of fuel prices in the country has historically held major companies out of India’s exploration block auctions. The same proposal would allow producers to search for all forms oil and gas energy under the same license and would allow companies to submit bids for the areas of their choice.
The announcement comes as President Nehandra Modi has placed a priority on greater energy independence for India, which imports most of its oil and gas. The President has pushed for greater outside investment in the country.