Final investment will be done after goverment decides gas price hike
Reliance India Ltd (RIL) and its partners BP plc of UK and Canada's Niko Resources plan to produce about 13 million standard cubic meters per day of gas for 13 years
New Delhi: Reliance Industries has said it will make a final investment decision on producing gas from the R-Cluster discovery in the flagging KG-D6 block only after the government decides on gas price hike. Reliance India Ltd (RIL) and its partners BP plc of UK and Canada's Niko Resources plan to produce about 13 million standard cubic meters per day of gas for 13 years from D-34 discovery, known as R-Cluster, in the KG-DWN-98/3 or KG-D6 block by 2017-18.
The planned output from D-34, which is estimated to hold an in place gas reserve of 2.2 trillion cubic feet, is equivalent to the combined current production from Dhirubhai-1 and 3 (D1 and D3) gas field and MA field in the KG-D6 block. In a presentation to investors post announcing its second quarter earnings, RIL said it has completed Front End Engineering Design (FEED) as well as geo-mechanical studies for the R-Cluster development.
Contracting activity was underway for long lead items. However, “clarity on gas price (is) required for FID (final investment decision),” Reliance Industries said. The government last month for the third time postponed a decision on raising natural gas prices. Now, it is looking at announcing a decision by November 15. A panel appointed by the UPA government had proposed a formula which would have at least doubled the rates but the same is under review with the BJP regime looking at moderating the increase to keep the burden on consuming power and fertiliser industry minimal.
( Source : PTI )
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