Reliance Industries has sought bids for gas from its coal bed methane block in Madhya Pradesh.
Bids have been invited for sale of 0.82 million metric standard cubic meters a day (mmscmd) of gas for a period of one year beginning April 1, according to public notice by the company.
Bidders are expected to quote a price in terms of percentage of the Dated Brent, which would be the average of Platts’s benchmark rates for three months preceding the supply month. Bids cannot be lower than 9.5% of the Dated Brent.
The actual price gas buyers pay will be the higher of the bid price or the domestic formula price published every six months by the Oil Ministry’s petroleum planning and analysis cell.
Potential buyers can start registering on the e-bidding platform from March 6 for the auction slated for March 18. The minimum volume one can bid for is 0.01 mmscmd. RIL has appointed CRISIL Risk and Infrastructure Solutions Limited to manage the auction.
