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    IB Times: BP and Niko May Not Gain Much From India's Energy Reforms

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British and Canadian firms prospecting for gas in India may not make huge gains from a recent government move that nearly doubled...

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IB Times: BP and Niko May Not Gain Much From India's Energy Reforms

British and Canadian firms prospecting for gas in India may not make huge gains from a recent government move that nearly doubled local gas prices. This is because two-thirds of India's gas production comes from state-owned firms at present.

India has introduced a pricing formula that will push up natural gas prices to around $8.40 per million British thermal units (mmBtu) by April next year, bringing them closer to global prices.

"The pricing formula is based on the average of the prices of imported liquefied natural gas (LNG) into India and the weighted average of gas prices in North America, Europe and Japan," Canadian energy firm Niko Resources said in a statement.

The UK's BP, India's Reliance Industries (RIL) and Niko Resources are prospecting for gas in southern India. RIL operates the KG-D6 gas block with a 60% stake. Energy giant BP owns 30% in the block and Niko the rest. MORE

 

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