Investor interest in North American natural gas has waned the last few years. Spurred by low prices for the commodity across the U.S. and Canada.
But it's critical to remember this isn't the only natgas market on Earth.
Elsewhere, natgas prices are looking solid. Especially in one country this week, where new government legislation is coming together cause a big rise nearly instantly. Related: OPEC Struggling To Keep Up The Pace In Oil Price War
That's India. Where officials are set to unveil rules that will allow market pricing for natural gas produced from some fields around the country, according to local press reports quoting sources in the national oil ministry.
Market prices will reportedly be allowed for natgas from "difficult fields". Including those in the ultra-deep water offshore, or fields with very high temperature or high pressure reservoir conditions. Related: Goldman Sachs Predicting $45 Oil By October
The new rules would allow a percentage of production from such fields to be sold at market prices -- which are currently estimated at around $7 to $8 per MMBtu. Up to 72% higher than the $4.66/MMBtu price currently fixed for most natural gas production in India.
The percentage of production eligible for market rates would reportedly vary from field to field. With officials deciding the specific formulas based on production costs and other site-specific variables. Related: What Is The Future For Saudi Aramco?
The step would be welcome relief for India's natgas producers. Who have stated that many recent discoveries are simply not economic at the $4.66 prevailing price.
If the measures do go through, they could thus turn fallow fields into valuable assets overnight. Especially in the offshore environment -- where the majority of qualifying projects are likely to be located.
Watch for specifics on the plan soon, with the measures reportedly being reviewed by India's finance ministry ahead of final approval.
Here's to freeing up profits,
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