Reliance Industries Ltd.

RIL and its partner NIKO are expected to begin gas production from its D6 block in Krishna-Godavari Basin in a couple of weeks. According to sources, RIL is expected to ink a GSPA with 12 fertiliser companies next week. The prospective buyers include Rashtriya Chemicals and Fertilisers (RCF), Nagarjuna Chemicals and Fertilisers, IFFCO, KRIBHCO, Chambal Fertilisers, Tata Chemicals, Indo-Gulf Fertilisers, and companies fed by GAIL (India) Ltd’s Hazira-Vijaipur-Jagdishpur pipeline.

The quantum of 15 mscmd of gas to be supplied to the fertiliser sector has already been decided by an Empowered Group of Ministers (EGoM). The other sectors prioritised by the EGoM were gas-based power plants, gas-based LPG plants, and city gas distribution projects.

The EGoM had also decided that the operator would sell gas produced under the New Exploration Licensing Policy (NELP) to consumers in accordance with the marketing priorities determined by the Government. It had also decided the D6 gas price of $4.2/mBtu at landfall point (for a crude price greater or equal to $60 a barrel). The price was applicable to all consumers across all sectors. crackcrack