Natural Gas Marketing Reforms approved 

Natural Gas Marketing Reforms approved 

Part of: GS Prelims and GS-III – Resources

In news

• The Union Cabinet has approved ‘Natural Gas Marketing Reforms’ to move towards gas based economy.

Key takeaways 

• Aim of the Policy: (1)To provide standard procedure for sale of natural gas in a transparent and competitive manner; (2) To discover market price by issuing guidelines for sale by contractor through e-bidding.
• Advantages: (1) This will bring uniformity in the bidding process across the various contractual regimes and policies; (2) Ambiguity shall be removed; (3) It shall contribute towards ease of doing business. 
• Affiliate companies can also participate in the bidding process to make it more open and transparent. 
• The policy will also grant marketing freedom to the Field Development Plans (FDPs) of those Blocks in which Production Sharing Contracts already provide pricing freedom.