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Reliance inks gas deal with 12 fertilizer firms

Reliance inks gas deal with 12 fertilizer firms
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First Published: Fri, Mar 27 2009. 08 37 PM IST
Updated: Fri, Mar 27 2009. 08 37 PM IST
New Delhi: Reliance Industries on Friday signed deals with 12 fertilizer firms to sell about 15 million standard cubic metres a day (mmscmd) of gas from its block off the country’s east coast.
Supplies will start from mid-April, Reliance said.
The firms will pay Reliance a marketing margin of 13.5 cents per million British thermal units (mmBTU) for the gas, said Satish Chander, director general of Fertiliser Association of India.
The margin is in addition to the government-set price of $4.2 per mmBTU for the gas.
“We are signing 15 contracts with 12 companies and the volumes are about 15 mmscmd,” P.M.S. Prasad, the chief executive of Reliance’s oil and gas business told reporters before signing the contracts.
The firms include Chambal Fertilisers, Indian Farmers Fertiliser Cooperative Ltd, Krishak Bharati Co-operative Ltd, Gujarat Narmada Valley Fertilizers Co Ltd, Gujarat State Fertilizers and Chemicals, Nagarjuna Fertilizers, Tata Chemicals, and Rashtriya Chemicals and Fertilizers Ltd.
Oil secretary R. S. Pandey had said production from Reliance’s KG-D6 block, located off the east coast of India, was expected to begin in the first week of April.
Reliance will raise gas output to 40 mmscmd later this year and 80 mmscmd by 2010, roughly equivalent to about 450,000 barrels per day of oil.
The government has said fertilizer plants will get gas on a priority basis from Reliance.
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First Published: Fri, Mar 27 2009. 08 37 PM IST