RIL pays 6% more to buy its own gas
Reliance Industries is paying 6 per cent more price to buy coal-bed methane gas from its own block in Madhya Pradesh in the second quarter of current fiscal, the company said in an investor presentation.
RIL had in May become the first buyer of gas it produced from its own coal-bed methane (CBM) block after agreeing to pay the highest price for the fuel.
It paid $4.23 per million British thermal unit for the CBM produced during May-June.
"For 2Q (July-September) FY18 supplies discovered price is $4.50 per mmBtu," the company said in an investor presentation after announcing first quarter earnings. "RIL is the successful bidder."
RIL said it began CBM production from its Sohagpur blocks in Madhya Pradesh in March this year. "205 wells are flowing and production ramp up is in progress. Produced 8.6 million standard cubic meters of gas in 1Q FY18," it said.
Following the April decision of the government to give coal bed methane (CBM) producers freedom to discover market price, RIL invited bids from users of gas.
The price discovered in the process was $4.23 for May-June and $4.5 for July-September.
The rate is almost double the $2.48 per mmBtu price RIL gets for natural gas produced from its eastern offshore KG-D6 block.
RIL said average production of gas from KG-D6 was 6.4 million standard cubic meters per per day and oil and condensate at 2,791 barrels per day during April-June quarter.