Reliance Industries and its partner BP will get only USD 4.06 a unit for the new gas they have started to produce from the eastern offshore KG-D6 field even though they have discovered a higher rate in an open market auction, sources said.
Reliance-BP in November 2019 auctioned initial gas from the R-Series field at a biddable percentage of Brent crude oil price.
If Brent crude oil stays in the current range of USD 50 to 51 a barrel, the price comes to USD 4.2 to 4.4 per million British thermal unit, two sources at the buyers of R-Series gas said.
Even though operators have pricing freedom, they can’t sell gas at a rate higher than the cap the government notifies every six months.
