Even though they have discovered a higher rate in an open market auction, Reliance industries and its partner BP will only get USD 4.06 per unit new gas from the eastern offshore KG-D6, reported Business Standard on Monday quoting unnamed sources.
Even after having pricing freedom, sellers can't sell gas at a rate higher than the cap that the government notifies every six months. And the cap for six months to March, 2021 is USD 4.06 per mmBtu down from USD 5.61 in the previous six months, automatically making this the only amount Reliance-BP can charge for the remainder of the current fiscal year.
Reliance got USD 4.205 per mmBtu for gas from D1 and D3 and MA fields during April 2019 and March 2014.
The rates came to USD 5.05 in 2014 and are currently at USD 1.79 per mmBtu.
Reliance has so far made 19 gas discoveries in the KG-D6 block while the MA field stopped producing last year, output from D-1 and D-3 ceased in February.
