Reliance Industries is seeking a minimum price of USD 5.4 per unit for the natural gas it plans to produce from newer fields in the Bay of Bengal block KG-D6 as it changed parameters to suit government policies.
Reliance and its partner BP Plc of the UK have sought bids from potential users for the 5 million standard cubic meters per day of natural gas they plan to produce from the R-Cluster Field in KG-D6 block from second quarter of 2020, according to the bid document.
Bidders have been asked to quote a price (expressed as a percentage of the dated Brent crude oil rate), supply period and the volume of gas required.
Dated Brent means the average of published Brent prices for three calendar months immediately preceding the relevant contract month in which gas supplies are made.
It set a floor or minimum quote of 9 per cent of dated Brent price—which means bidders would have to quote 9 or a higher percentage for seeking gas supplies.
At USD 60 per barrel price, the gas price comes to USD 5.4 per million British thermal unit (mmBtu). E-bidding would happen on October 10, the bid document said.
The rate compares to the government mandated USD 3.69 rate that it’s currently producing Dhirubhai-1 and 3 fields in KG-D6 block are getting.
