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[eninrac-consulting]

The CGD sector in India has got a lease of new life with the recommendations of Kirit Parikh Committee (KPC) being enacted by GoI upon gas pricing. The Government has set up the committee to review the gas pricing formula post the surge observed at the global level. The ceiling of $6.5/MMBtu and the floor of $4/MMBtu for domestic natural gas prices will facilitate the Government’s agenda to promote CGD which in turn shall increase the wider acceptance of natural gas in the country. Interestingly, without ceiling which is to be maintained for FY24 and FY25 and then shall be increased by $0.25/MMBtu on yoy basis, the price would have been in the range of $10-11/MMBtu for the first-half of FY24 only, which would have been nig deterrent for the CGD market growth. Given CGD entities are shielded from any price hike following KPC recommendations till 2027 is a golden opportunity to expand base in the country. Currently with 11th and 11A bidding rounds under process in the country PNGRB has invited bids of 71 GAs in these rounds. • Checkout Eninrac Report on - Global Natural Gas Pipeline Infrastructure Opportunity 2023 – Half Yearly Insights - : https://store.eninrac.com/reports/global-natural-gas-pipeline-infrastructure-opportunity-ndash-half-yearly-insights