IndianOil in talks to source natural gas from RIL
New Delhi   14-Jun-2007
IndianOil is in talks with Reliance Industries Ltd (RIL) for sourcing 11.57 million metric standard cubic meter (mmscm) of gas from the latter's gas fields in the KG basin, for the captive consumption of its refineries. This requirement of IOC is in addition to the sourcing of gas for its city gas distribution projects in various cities of the country, proposed to be undertaken as joint venture projects with Reliance. Says chairman and managing director IOC, Sarthak Bhuria in a recent letter to petroleum secretary, M S Srinivasan, "We have approached RIL for supply of natural gas from their KG basin find, basically for captive consumption in our own refineries. We now seek your advice and assistance for proceeding further for allocation of 11.57 mmscmd of natural gas by RIL for our captive consumption." While IOC has indicated its immediate requirement of gas at 0.52 mmscmd for its Gujarat (0.22 mmscmd) and Mathura (0.30 mmscmd) refineries, the supplies from September 2009 will be 2.31 mmscmd, from March 2010 will be S.21 mmscmd and will go up to 11.57 mmscmd from September 2011. It has sought confirmation of gas supplies from RIL by September 1,2007. The proposed pricing of gas from the KG basin fields of Reliance at around $4.79 per million british thermal unit (well-head price) is yet to be cleared by the government. However, at a meeting chaired by petroleum secretary MS Srinivasan on Tuesday, public sector oil and gas firms including IndianOil, GAIL, MRPL were asked to submit their requirements for gas supplies from RIL's gas fields. Domestic gas supplies would substantially increase in 2008-09 following supplies from RIL's offshore fields in the KG basin.