Reliance Industries has made drastic changes in gas supply contracts that will jack up its KG-D6 gas price by 10 per cent over and above the new rate of $8.3 coming into effect from next month.
RIL has circulated to urea manufacturing fertiliser units a new Gas Sale and Purchase Agreement (GSPA) for supply of natural gas from its eastern offshore KG-D6 fields from April 1 upon expiry of current 5-year supply contract at month end.
In the new GSPA, RIL has proposed to charge government- fixed rate for natural gas on Gross Calorific Value (GCV) basis instead of current practice of billing $ 4.20 per million British thermal unit on Net Calorific Value (NCV) basis, sources said.
A senior official in the fertiliser ministry said his ministry has taken up the issue with the Oil Ministry. “We expect the Cabinet decision to price natural gas based on Rangarajan Committee formula to be implemented in letter and spirit,” he said.