Reliance buys two-thirds of gas from KG-D6
The auction was held under the liberalised price discovery rules notified by the government that allowed affiliates of the gas producer to bid and buy natural gas.
New Delhi: Billionaire Mukesh Ambani’s Reliance Industries has picked up two-thirds of its own new gas from KG-D6 block that was auctioned under new rules with state-owned GAIL and Royal Dutch Shell getting smaller volumes, sources said.
Reliance and its partner UK’s BP Plc on Friday auctioned 7.5 million standard cubic metres per day of incremental gas from the R-series gas field in the KG-D6 block, benchmarking it to a gas marker for the very first time in the country.
The auction was held under the liberalised price discovery rules notified by the government that allowed affiliates of the gas producer to bid and buy natural gas. Reliance O2C, an affiliate of Reliance, picked up 4.8 mmscmd of gas in Friday’s auction that lasted for seven-and-a-half-hours, sources with direct knowledge of the development said.
State gas utility GAIL (India) Ltd won 0.85 mmscmd of supplies while Shell picked up 0.7 mmscmd. Adani Total Gas Ltd got 0.1 mmscmd, Hindustan Petroleum Corporation Ltd (HPCL) 0.2 mmscmd and Torrest Gas 0.02 mmscmd. Other buyers include IRM Energy (0.1 mmscmd), PIL (0.35 mmscmd) and IGS (0.35 mmscmd), they said.
Sources said the gas was bought at a price of $0.18 per million British thermal unit discount to JKM i.e. price of JKM (minus) $0.18 with tenures ranging from 3 to 5 years. Reliance did not respond to email sent for comments.
This was second time Reliance-BP conducted an e-bidding process which ran on a dynamic forward auction basis for sale of KG-D6 gas. Earlier in November 2019, 5 mmscmd of natural gas was sold at price in range of around 8.6 per cent of Brent crude oil for tenure ranging from 2 to 6 years.
Reliance-BP started production of gas on December 18 last year from the R Cluster ultra-deep-water gas field in block KG D6 off the east coast of India. The duo developing three deep-water gas projects in block KG-D6 — R Cluster, Satellites Cluster and MJ — which together are expected to meet around 15 per cent of India’s gas demand by 2023. R Cluster is the first of the three projects to come onstream and is the deepest offshore gas field in Asia.
Now you can get handpicked stories from Telangana Today on Telegram everyday. Click the link to subscribe.
Click to follow Telangana Today Facebook page and Twitter .
Related News
