Reliance re-launches auction for sale of natural gas from eastern block

20 Mar 2023 , 02:11 PM

Reliance Industries Ltd and BP PLC have restarted an auction for the sale of natural gas from their KG-D6 block located in the eastern offshore, incorporating the government’s latest marketing regulations. 

These rules prioritize city gas companies that sell Compressed Natural Gas (CNG) for the supply of natural gas.

As per reports, Reliance Industries and its partner BP Exploration (Alpha) Ltd (BPEAL) are set to conduct an e-auction on April 3. The company plans to sell 6 million standard cubic meters per day of natural gas.

While the cost of natural gas will be linked to the worldwide LNG benchmark, JKM, it will also be subjected to a maximum price limit set by the government.

Initially, the auction was scheduled for January, but a few days prior to that, the Ministry of Petroleum and Natural Gas released fresh guidelines on January 13 for the sale and resale of gas produced from discoveries in deep-sea, ultra-deepwater, and high-pressure-high temperature regions.

As a result, the auction was put on hold, but it is now being resumed after incorporating the necessary modifications to comply with the updated regulations.

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