RIL seeks $5.4 per unit for new gas from KG-D6 block
09 Sep 2019
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Reliance and its partner BP Plc have sought bids from potential users for the 5 million standard cubic metres per day of natural gas they plan to produce from the R-Cluster Field in KG-D6 block from the second quarter of 2020.
Reliance Industries is seeking a minimum price of $5.4 per unit for the natural gas it plans to produce from newer fields in the Bay of Bengal block KG-D6 as it changed parameters to suit government policies.
It set a floor or minimum quote of 9 per cent of dated Brent price -- which means bidders would have to quote 9 or a higher percentage for seeking gas supplies.
At $60 per barrel price, the gas price comes to $5.4 per million British thermal units (mmBtu). E-bidding would happen on October 10, the bid document said.
Bidders have been asked to quote a price (expressed as a percentage of the dated Brent crude oil rate), supply period and the volume of gas required. Dated Brent means the average of published Brent prices for three calendar months immediately preceding the relevant contract month in which gas supplies are made.
The rate is higher compared to the government-mandated $3.69 rate that its currently producing Dhirubhai-1 and 3 fields in KG-D6 block are getting.
The government gas pricing policy, however, provides for a higher cap price for future gas produced from difficult fields like those located in deep sea. This cap currently is fixed at $9.32 per mmBtu.
Reliance and BP are developing three sets of discoveries in KG-D6 block -- R-Cluster, Satellites and MJ by 2022.
