Executive Summary:
This notification outlines Natural Gas Marketing Reforms aimed at increasing domestic gas production, promoting a gas-based economy, ensuring uniform market price discovery, and improving Ease of Doing Business. It allows contractors to sell natural gas through e-bidding and revises the definition of "Arms Length Sale." It also grants marketing freedom for specific Field Development Plans approved before February 28, 2019. The notification was issued on October 15, 2020.
Key Points / Main Content:
E-Bidding for Market Price Discovery:
* Contractors can sell natural gas through e-bidding, as per contract provisions, to discover market prices transparently.
* Bids must be invited through an electronic portal following a transparent, competitive bidding process.
* Bidding must be conducted through an independent agency selected from a Directorate General of Hydrocarbons (DGH) panel.
Revised Definition of Arms Length Sale:
* Arms Length Sales now mean sales between unrelated parties following a transparent, competitive bidding process prescribed by the Government.
* Sales to the Contractor or its constituents are not considered Arms Length Sales.
Sale to Affiliates:
* Sales to Affiliates are allowed if they participate in the open competitive process.
* The Contractor or its constituents cannot participate in the bidding process (seller and buyer cannot be the same entity).
* Rebidding is required if only affiliates participate and there are no other bidders.
Marketing Freedom:
* Marketing freedom is granted for natural gas from Field Development Plans (FDPs) approved before February 28, 2019, pertaining to Production Sharing Contracts (PSCs) where contractors have pricing freedom but restricted market freedom.
* Market price for such gas must be discovered through the e-bidding process.
Exclusions:
* This policy does not apply to contracts/PSCs where the Government must approve the sale formula/basis or specific contract conditions apply.
Clarification Authority:
* The Ministry of Petroleum and Natural Gas is authorized to provide clarifications or interpretations of the amendment with the Minister's approval.
Impact Analysis:
Contractors:
* Impact: New rules for selling natural gas, including e-bidding and revised definitions affecting sales processes.
* Action Required: Implement e-bidding procedures, revise contract interpretations based on the new "Arms Length Sale" definition, and adhere to affiliate participation rules.
Affiliates of Contractors:
* Impact: Can participate in bidding processes under specific conditions.
* Action Required: Participate in open bidding processes and ensure compliance with rules regarding contractor/constituent non-participation.
Directorate General of Hydrocarbons (DGH):
* Impact: Responsible for maintaining a panel of independent agencies for conducting e-bidding.
* Action Required: Shortlist agencies for the panel using an open and transparent procedure.
Ministry of Petroleum and Natural Gas:
* Impact: Authority to provide clarifications or interpretations of the amendment.
* Action Required: Provide clarifications as needed with the Minister's approval.
Key Entities Referenced
Ministry of Petroleum and Natural Gas: The Indian government ministry responsible for the exploration, production, refining, distribution, marketing, and pricing of petroleum, natural gas, and petrochemicals.
Natural Gas Marketing Reforms: The subject of the notification, indicating changes and policies related to the marketing of natural gas in India.
Directorate General of Hydrocarbons (DGH): A regulatory body in India under the Ministry of Petroleum and Natural Gas, responsible for promoting sound management of oil and natural gas resources.
New Delhi: The location of the Ministry of Petroleum and Natural Gas, likely where the notification was issued. Capital of India.
Contracts: Refers to agreements between parties for the exploration, production, and sale of petroleum, including natural gas. Specific contracts like Production Sharing Contracts (PSCs) are mentioned.
Field Development Plans (FDPs): Plans for developing oil and gas fields, which are relevant to the policy changes regarding marketing freedom for natural gas.
Production Sharing Contracts (PSCs): Agreements between the government and contractors for exploration and production of petroleum resources, where production is shared.
Amar Nath: Joint Secretary, Ministry of Petroleum and Natural Gas. Signatory of the notification.
रजिस्ट्री स.ं डी.एल.- 33004/99 REGD. No. D. L.-33004/99
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असाधारण
EXTRAORDINARY
भाग I—खण्ड 1
PART I—Section 1
प्राजधकार स ेप्रकाजित
PUBLISHED BY AUTHORITY
स.ं 300] नई ददल्ली, िुििार, अक्त बू र 16, 2020/ आजश्ि न 24 1942
No. 300] NEW DELHI, FRIDAY, OCTOBER 16, 2020/ ASVINA 24, 1942
परे ोजलयम और प्राकृजतक गसै मत्रं ालय
अजधसचू ना
नई ददल्ली, 15 अक् तूबर, 2020
जिषय: प्राकृजतक गसै जिपणन सधु ार।
अन्ि षे ण-15022(13)/234/2019-ओएनिी-डीV (पी-32114).—भारत सरकार प्राकृजतक गैस का घरेल ू
उत् पादन बढान,े गैस आधाररत अथथव् यिस्ट्थ ा की ददिा म ें आग े बढन,े गैस का बाजार मल्ू य जनधाथररत करन े की प्रदिया म ें
एकरूपता लाने तथा
पारदिी तरीकों स े करना अपेजित ह।ै संजिदाकार ई-बोली के माध् यम स े घरेल ू रूप स े कारोबार म ें आसानी को बढािा देने
के उद्देश् य स े जनम्न जलजखत प्राकृजतक गैस जिपणन सुधारों को एतद्द्वारा अजधसूजचत करती ह:ै
1. संजिदाकार संजिदाओं के प्रािधानों के अनुसार ई-बोली के माध्य म स े प्राकृजतक गैस की जबिी कर सकता ह ै जिसके
जलए बाजार मूल् य का जनधाथरण उत् पाददत प्राकृजतक गैस का बाजार मूल् य जनधाथररत करने के जलए जनम्न जलजखत प्रदिया
अपनाएगा:
i) संजिदाकार सरकार द्वारा अजधसूजचत पारदिी और प्रजतस्ट्प धात्थ मक बोली प्रदिया का पालन करके बाजार मल्ू य
जनधाथररत करने के जलए इलैक्र ॉजनक बोली पोर्थल के माध् यम स ेबोजलयां आमंजत्रत करिाएगा।
ii) बोली हाइड्रोकाबथन महा जनदेिालय (डीिीएच) द्वारा रखे गए पैनल स े चयजनत स्ट् ितंत्र एिेंसी के माध् यम स े
आयोजित की िाएगी। डीिीएच एक खुली और पारदिी प्रदिया का पालन करके पैनल के जलए एिेंजसयों का चयन करेगा।
4984 GI/2020 (1)2 THE GAZETTE OF INDIA : EXTRAORDINARY [PART I—SEC. 1]
2. सभी संजिदाओं म ें ‘आम्स थ लेंथ जबिी’ की पररभाषा को जनम्न ानुसार प्रजतस्ट्थ ाजपत दकया िाएगा:
“इस संजिदा के जलए ‘आम् सथ लेंथ जबिी’ का तात् पयथ सरकार द्वारा यथा-जनधाथररत प्रदिया के अनुसार एक पारदिी और
प्रजतस्ट् पधाथत् मक बोली प्रदिया का पालन करते हुए िेता और जििेता पिकारों, िो कानूनी रूप स े एक ही कंपनी नहीं हों, के
बीच की गई पेरोजलयम की जबिी स े होगा। संजिदाकार अथिा उसकी संघर्क कंपजनयों को की िाने िाली जबिी को आम् स थ
लेंथ जबिी नहीं माना िाएगा।”
पररणामस्ट् िरूप, सभी संजिदाओं म ें यह संिोधन हो गया ह।ै
3. यदद संबद्ध कंपजनयां परै ा 1 म ें जनधाथररत खुली प्रजतस्ट् पधाथत् मक प्रदिया म ें भाग लेती ह ैं तो संबद्ध कंपजनयों को जबिी
की अनुमजत होगी। तथाजप, संजिदाकार अथिा उसकी संघर्क कंपजनयां बोली प्रदिया म ें भाग लने े के जलए पात्र नहीं होंगी।
अत: जििेता और िेता एक ही कंपनी नहीं होगी। इसके अलािा, यदद केिल संजिदाकार की संबंद्ध कंपनी (कंपजनयां) अथिा
उसकी संघर्क कंपजनयां बोली प्रदिया म ें प्रजतभागी होती ह ैं और संजिदाकार की संबद्ध कंपनी (कंपजनयों) अथिा उसकी
संघर्क कंपनी (कंपजनयों) के अलािा अन् य कोई बोलीदाता प्रजतभागी नहीं होता ह ै तो बोली प्रदिया िैध नहीं होगी। ऐसी
जस्ट् थजत म ें बोली पुन: ओयोजित करनी होगी। इस बदलाि स े जबिी की प्रदिया के बारे म ें सीबीएम स े िीघ्र मुद्रा अर्जित करन े
के संबंध म ें ददनांक 11 अप्रलै , 2017 की अजधसूचना का पैरा 1 संिोजधत हो िाएगा।
4. उन उत् पादन जहस्ट्स ेदारी संजिदाओं, जिनम ें संजिदाकार को मूल् य जनधाथरण की आजादी ह ै ककतु जिपणन की आजादी
प्रजतबंजधत ह,ै स े संबंजधत ऐसी ित्रे जिकास योिनाओं (एफडीपीि) स े उत् पाददत प्राकृजतक गसै के जलए जिपणन की आजादी
दी िाती ह ै जिन् ह ें ददनांक 28 फरिरी, 2019 स े पहल े अनुमोददत दकया गया था। ऐसी गैस के बाजार मल्ू य का जनधाथरण
पैरा 1 म ें यथा-प्रस्ट् ताजित प्रदिया के माध् यम स ेदकया िाएगा।
5. यह नीजत उन संजिदाओं/पीएससीि पर लागू नहीं होगी जिनमें संजिदाकार द्वारा जबिी का सूत्र/आधार सरकार स े
अनुमोददत करिाना अपेजित ह ै अथिा संजिदाकार द्वारा गैस की जबिी संजिदा की जिजिष्र् ितों के अनुसार करनी अपेजित
ह।ै
6. यदद उपयुथक् त संिोधन के संबंध म ें और अजधक स्ट्प ष्र् ीकरण अथिा व् याख् या अपेजित ह ै तो पेरोजलयम और प्राकृजतक
गैस मंत्रालय मंत्री के अनुमोदन स े ऐसा करने के जलए प्राजधकृत ह।ै
अमर नाथ, संयुक् त सजचि
MINISTRY OF PETROLEUM AND NATURAL GAS
NOTIFICATION
New Delhi, the 15th October, 2020
Subject: Natural Gas Marketing Reforms
Expl-15022(13)/234/2019-ONG-DV (P-32114).—With the objective of increasing domestic
production of natural gas, to move towards gas based economy, bring uniformity in the process of discovery
of market prices of gas, and to promote Ease of Doing Business, the Government of India hereby notifies
following Natural Gas Marketing Reforms:
1. The Contractor may sell the natural gas through e-bidding as per provisions of Contracts
which require market price discovery through transparent means. The Contractor will adopt the following
procedure for discovery of market price of domestically produced natural gas through e-bidding:[भाग I—खण् ड 1] भारत का रािपत्र : असाधारण 3
i) The Contractor shall get the bids invited through an electronic bidding portal to discover
market price by following a transparent and competitive bidding process notified by Government.
ii) The bidding will be conducted through an independent agency selected from a panel
maintained by Directorate General of Hydrocarbons (DGH). The DGH will shortlist the agencies for the
panel by following an open and transparent procedure.
2. The definition of ‘Arms Length Sale’ in all Contracts shall be replaced as follows:
“Arm’s Length Sales” shall mean, for the purpose of this Contract, the sales of Petroleum
carried out between buyer and seller parties, not being the same legal entity, following a
transparent and competitive bidding process according to procedures as prescribed by
Government. The sale to the Contractor or it’s constituents will not be considered as Arms
Length Sale”.
As a result, all contracts stand amended to that extent.
3. Sale to Affiliates will be allowed if Affiliates participate in the open competitive process
prescribed in para 1. However, the Contractor or it’s constituents shall not be eligible to participate in the
bidding process. Therefore, seller and buyer will not be the same entity. Further, the bidding process will not
be valid if only affiliate(s) of the Contractor or its constituents are the participant(s) in the bidding process,
and there are no bidders other than the affiliate(s) of the Contractor or its constituents. In such a situation,
rebidding will have to be done. With this change, the para 1 of Notification dated 11th April, 2017 on Early
Monetization of CBM, regarding process of sale, will stand amended.
4. Marketing freedom is granted for natural gas produced from Field Development Plans
(FDPs) which were approved before 28th February 2019 pertaining to Production Sharing Contracts (PSCs),
where Contractor has pricing freedom but market freedom is restricted. The market price of such gas shall be
discovered through the process as proposed in para 1.
5. This policy will not apply to those contracts/PSCs where Contractor is required to get the
formula or basis of sale approved from the Government or the Contractor is required to sell the gas as per the
specific conditions of the contract.
6. In case of any further clarification or interpretation of the above amendment is required,
Ministry of Petroleum and Natural Gas is authorized to do with the approval of the Minister.
AMAR NATH, Jt. Secy.
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