Reliance Industries Limited to link $10 billion with gas price

Investment depends on goverment approving acceptable gas price
New Delhi: Reliance Industries’ $10 billion investment in new fields off the east coast depends on the government approving acceptable gas price, its junior partner Niko Resources said.RIL has an array of natural gas discoveries in the Krishna Godavari basin KG-D6 block as well as NEC-25 area off the Odisha coast and it along with its partners BP plc of UK and Niko has detailed plans to bring them to production in the next few years.
Canadian Niko Resources in its AGM presentation on Thursday stated that “planned development projects in India (are) dependent on acceptable gas pricing.” While the previous government had approved a formula that would have doubled natural gas rates to $8.4 per mmBtu, the present dispensation is reviewing it and is likely to take a decision by month-end.
Niko said final investment decisions to develop R-Series gas fields as well as satellite discoveries in KG-D6 block is “waiting on favourable resolution of gas price.” The partners say new field developments are economically unviable at the current price of $4.2.
The Canadian firm said final investment decisions on developing gas finds in NEC-25 block is “waiting on favourable resolution of gas price”.
( Source : PTI )
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