Gas market reforms: Experts flag price sensitivity

THE LATEST SET of measures by the Petroleum and Natural Gas Regulatory Board (PNGRB) to liberalise the natural gas market may be a step in the right direction but its growth will hinge on cost competitiveness and an adequate pipeline network, experts believe.

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A high-level expert committee set up by the PNGRB has proposed structural reforms to build a free and competitive domestic gas market, including market-driven pricing and open access.

"These reforms have been talked about for many years now that pipeline capacity and marketing should be separate.

Marketing should not be done by the owner of the pipeline. Part of this is important but India being price sensitive and due to volatility in prices of LNG, overall growth has been impacted," said Prashant Vasisht, Senior Vice President and Co-Group Head, Corporate