Reliance methane proposal set to be rejected

By Nishant Ugal

 05 July 2012 22:59 GMT

INDIA’S Ministry of Petroleum & Natural Gas is expected to reject Reliance Industries proposed price for gas produced from a coalbed methane block in central India as too high, writes Nishant Ugal.

The Indian petroleum ministry is citing an earlier ruling by the country’s apex court in 2010, which stated that the natural gas allocated by the group of ministers cannot be over-ridden by an arrangement made by the contractor.

The stand taken by the Indian petroleum ministry has sparked a fresh controversy on the CBM gas pricing mechanism in India

Reliance Industries has proposed a price of close to $13 per million British thermal units for its Sohagpur CBM block, while Essar has proposed around $4.2 per million Btu for a block in West…

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