Uncertain reform of natural-gas pricing in India, if allowed to move forward, would revive oil and gas investment and help the government balance its accounts, according to a new study by IHS . Although the government has announced plans to allow gas prices to increase this year to $8.50/MMbtu from $4.20/MMbtu, it didn’t act before national elections held last month. A group led by Reliance Industries Ltd. issued a notice of arbitration when a price increase it expected under an agreement with the government covering the deepwater KG-D6 Block in the Bay of Bengal didn’t take effect on Apr. 1 ( OGJ Online, May 12, 2014 ). By weakening investment in exploration and accelerating consumption, the IHS study says, India’s policies on gas prices have increased the country’s reliance on external supply and helped make it the world’s fifth largest importer of LNG. Citing government documents, the study […]