IndianOil seeks reliance gas for its refineries
New Delhi   09-Jul-2007
IndianOil, the nation's largest oil firm, has sought 11-5 million standard cubic metres per day (mmscmd) of natural gas from Reliance Industries' KG-D6 block for consumption in its refineries. "We have approached RIL for supply of natural gas from the if KG basin find, basically for captive consumption in our own refineries," IOC chairman S. Behuria said in a letter to petroleum secretary M. S. Srinivasan. RIL has proposed to price gas from its KG-d6 block at $4.33 per million British thermal unit (mbtu), with delivered price ranging between $5.2 per mbtu and $6.2 per in biu depending on distance and local taxes. Mr Behuria said IndianOil's Koyali refinery in Gujarat immediately needs 0.22 mmscmd of gas and its Mathura Refinery another 0.30 mmscmd. From September 2009, Koyali would need- 0.47 mmscmd and Mathura 0.34 mmscmd while another 1.50 mmscmd would be needed for the naphtha cracker project at Panipat. IndianOil's subsidiary Chennai Petroleum Corp Ltd needs 2.80 mmscmd gases from March 2010. RIL is to begin gas production from KG-D6 in July 2008 with an initial output of 40 mmscmd, which would be ramped up to 80 mmscmd within less than a year. Presently, except for a share of liquefied natural gas imported by Petronet Lng at Dahej in Gujarat, IndianOil does not have any gas source for captive requirement in its refineries.