Snub to gas price appeal

By Nishant Ugal from Singapore

 29 November 2012 23:59 GMT

India’s Ministry of Petroleum and Natural gas has reiterated that there will be no price revision for gas produced by Reliance Industries from its D6 deep-water block in the Krishna Godavari basin before 2014.

“It is reiterated that the request of Reliance Industries regarding revision of price was rejected in October, 2010. It was categorically stated that no revision of gas price can be considered before 2014,” said the ministry.

Reliance is presently getting around $4.2 per million British thermal units for the gas it produces from the D6 block.

However, Reliance and its partner BP have been demanding a higher market-linked price for the D6 gas.

Gas prices in India are subject to approval by the Indian government for a fixed tenure.

The D6 gas fields have been…

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