Will not supply gas at $4.2 mmbtu: RIL

Will not supply gas at $4.2 mmbtu: RIL
Mukesh Ambani group's flagship company Reliance Industries (RIL) has refused to budge on the gas price hike from April 1, 2014 — after agreeing to supply gas temporarily to fertiliser companies a week ago.
 
The company has shot off a letter to the fertiliser units saying that it is not bound by any agreement to supply gas from its KG-D6 at $4.2 per mmbtu (Million Metric British Thermal Units) even in the interim.
 
On Tuesday, RIL wrote to the fertiliser firms, saying the gas price of $4.2 per mmbtu was valid only till March 31. 
 
"By a notification dated January 10, 2014, published on the Gazette of India on January 17, 2014, the Government of India has notified the (new) gas price formula. Clearly, with effect from April 1, 2014, a revised price is applicable to all gas supplied by us and accepted by you," it wrote.
 
In a jolt to the users of Reliance gas, Reliance Industries said the new formula of gas pricing which almost doubles the rate of natural gas will apply from April 1. 
 
RIL has gone ahead and taken the step despite the Election Commission directing the Petroleum Ministry to put off plans to introduce a gas pricing policy from April 1.
 
Last week, RIL and urea companies had failed to come to an agreed price decision on gas supply from April 1 after the expiry of the five-year contracts that priced gas from the eastern offshore KG-D6 fields at $4.2 per million British thermal units.
 
Fertiliser Secretary Shaktikanta Das had said last week that RIL had agreed to supply natural gas to fertiliser companies at $4.2/mmbtu till a new agreement is reached between RIL and 16 fertiliser companies that buy gas from the company.

Das, however, did not elaborate on the duration or other terms of potential new contracts between RIL and the fertiliser companies.
 

Liked the story?

  • 0

    Happy
  • 0

    Amused
  • 0

    Sad
  • 0

    Frustrated
  • 0

    Angry