Question : Setting up of Natural Gas Trading Hub

(a) whether despite being the world’s fourth biggest importer of LNG, India does not have a free market regime for gas and if so, the details thereof and the reasons therefor;
(b) whether the Government has any proposal/plan to build a natural gas trading hub in the country;
(c) if so, the details thereof along with the aims and objectives thereof and the time by which the said proposal/plan is likely to be implemented; and
(d) the steps taken/being taken by the Government to become Asia’s pricing hub to compete with other countries?

MINISTER OF STATE (INDEPENDENT CHARGE) IN THE MINISTRY OF PETROLEUM & NATURAL GAS (SHRI DHARMENDRA PRADHAN)
(a) to (d): In respect of imported Liquefied Natural Gas (LNG), Government has allowed import of LNG under open general licence, prices and utilization of which is determined as per mutually agreed terms and conditions between the seller and the buyer. Government has issued guidelines i.e. Hydrocarbon Exploration and Licensing Policy (HELP) scheme, 2016 with marketing and pricing freedom for new gas production from Deepwater, Ultra Deepwater and High Pressure-High Temperature areas and selection of customers for allocation of domestic gas from small & isolated fields policy, 2013 which provide freedom of marketing and pricing to the gas producers. The price of domestically produced gas under new gas pricing guidelines, 2014 is linked with global gas markets viz. Henry Hub(HH), National Balancing Point(NBP), Alberta Hub and Russia. At present, no decision with regard to a natural gas trading hub in the country has been taken.
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