Team Blitz India
NEW DELHI: Reliance Industries Ltd is seeking a minimum $10 rate for the gas it plans to produce from coal seams, as it altered its pricing formula to reflect the changed energy scenario.
Users have been asked to quote a premium they are willing to pay over and above 12.67 per cent of the Dated Brent crude oil price.
Gas price shall be higher than 12.67 per cent of Dated Brent plus premium ‘V’; or the Government-declared monthly price for conventional gas. The Government-mandated price for January is $7.82 per mmBtu.
Reliance has set the starting bid price of ‘V’ at $.50 per million British thermal units – bidders have to quote ‘V’ higher than $ 0.50.
At the current Brent crude oil price of USD 78 per barrel, the minimum gas price comes to USD 10 per mmBtu (12.67 per cent of USD 78 is USD 9.88 per mmBtu.
E-auction is planned for January 31, the tender document showed. The contract duration is for 1 to 2 years beginning April 1.
