With gas output from its fields not matching commitments in the past, Reliance Industries is offering ‘supply or pay’ contracts for natural gas it plans to produce from newer fields beginning mid-2020, with an obligation to pay if it is unable to supply.
Reliance and its partner BP of UK, in a notice inviting offer (NIO) for sale of gas from R-Series fields in the KG-D6 block in the Bay of Bengal have, for the first time, offered to pay the buyer for the purchase of alternative fuel for the default quantity.
This clause is in addition to the take-or-pay clause requiring the buyer to offtake the committed quantity or pay for it.
