Govt prescribed price for RIL gas lower than others

Govt prescribed price for RIL gas lower than others
PTI
Comment E-mail Print Share
First Published: Thu, Aug 06 2009. 02 19 PM IST
Updated: Thu, Aug 06 2009. 02 19 PM IST
New Delhi: Stressing that the priced fixed for gas produced by Reliance Industries was lower than rates charged by other private firms, the government said on Thursday its gas utilisation policy was aimed at operationalising idle and unutilised assets.
Replying to a calling-attention motion in Rajya Sabha, oil minister Murli Deora said the $4.2 per million British thermal unit price fixed for gas produced from KG-D6 fields of RIL was lower than the average of $5.51 per mmBtu charged by UK’s BG-led consortium for Panna/Mukta and Tapti gas.
It was also lower than the $4.3 per mmBtu price of gas produced from Cairn’s Ravva Satellite fields and $4.75 per mmBtu for the UK firm’s Lakshmi fields.
Deora, replying to the motion moved by Tapan Kumar Sen on availability of gas for power generation, said that an empowered group of ministers had fixed the price formula as well as usage of gas.
“The intention of the Government being to operationalise all gas based assets which were lying idle/unutilised due to non-availability of gas,” he said.
The eGoM-approved price formula provides for a maximum gas price of $4.2 per mmBtu at $60 a barrel crude rate. If crude falls to $25, RIL gas will cost $2.5 per mmBtu.
“I am confident that natural gas would fuel economic growth of the country and the government will do all in its power to ensure its use for natural priorities at reasonable price,” he said.
Comment E-mail Print Share
First Published: Thu, Aug 06 2009. 02 19 PM IST