NEW DELHI: RIL’s gas pricing formula, which has been the focus of the ongoing gas debate, is being independently examined by the PM’s Economic Advisory Council (EAC) chairman C Rangarajan.
It is understood the PMO had asked EAC to look into the formula even as the committee of secretaries (CoS) deliberates on the larger issue of pricing and allocation of natural gas.
Senior officials involved in examining RIL’s pricing say the end-price of $4.33 per million British thermal units (mmbtu) is reasonable in terms of prevailing rates of natural gas in the domestic and global markets. But they have some reservations over the formula, devised by RIL to derive the value of the gas. They say almost 97% of the component in RIL’s formula is the fixed component.
Read more at Economic Times
Tuesday, July 31, 2007
Reliance KG gas pricing in with Doc
Friday, March 30, 2007
Reliance plans two new gas pipelines: Govt
Reliance Industries Ltd, plans to build two gas pipelines in southern India, the government said on Friday, that could help the energy explorer supply gas from its deep-sea fields to retail consumers.
The petrochemicals to oil refiner aims to produce 80 million cubic metres of gas a day (mmscmd) by mid-2008 from its two fields in the prolific Krishna Godavari basin, off the southern state of Andhra Pradesh.
The Oil Ministry said in an advertisement on Friday that Reliance Gas Transportation Infrastructure Ltd., a group firm, had submitted a proposal to lay a 670 km pipeline from Chennai to Tuticorin in Tamil Nadu.
It also wants to build another 660 km pipeline from Chennai to Mangalore in the neighbouring state of Karnataka, via Bangalore, the ministry said.
The advertisements in local newspapers did not disclose the cost of the two projects, and a Reliance spokesman could not give details immediately.
Reliance is already constructing a 1,400 km (870 mile) pipeline to transport natural gas from the deep-sea fields off India's east coast to the western regions of the country.
Earlier this month, P.M.S. Prasad, head of Reliance's oil and gas business, said the company planned to build city gas distribution networks in Tamil Nadu and Karnataka and also in Maharashtra and Gujarat in the west and West Bengal in the east.
The Oil Ministry said the two new projects were to be developed on a common carrier basis, making it mandatory for Reliance to offer 33 percent of each pipeline's total capacity to other firms.
"The interested party would have to enter into a take or pay contract or any other mutually agreeable contract with the owner for usage of the proposed pipeline," the ministry said.
India produces 95 mmscmd of gas and the government expects this to rise to more than 190 mmscmd by 2009 after a series of gas finds off the east coast, including by Reliance, come on stream.
Tuesday, March 20, 2007
RIL has $12 bn for gas find, transport
$5.2bn will be spent on gas production, while a larger chunk of $7bn on building gas pipes.
Reliance Industries is lining up investments of over $12 billion for production of gas from its fields in the Krishna-Godavari basin and its transport to consumers across the country.
While $5.2 billion will be spent on bringing the gas to production, a larger chunk of $7 billion will be invested in building gas pipes to transport it to consuming locations.
Production of gas from the K-G basin will begin by June 2008, the company’s president (oil and gas), PMS Prasad, told reporters.
There are three key pipelines that are being planned by the Mukesh Ambani-controlled company from Kakinada in Andhra Pradesh — a 1,386-km pipeline to Bharuch in Gujarat at an investment of $4 billion, and two coastal pipelines to West Bengal and Chennai at an investment of $3-3.5 billion.
Read more at Business Standard