Reliance Industries Ltd (RIL) and British Petroleum Plc on Friday announced the formation of India Gas Solutions, an equal joint venture that would focus on global sourcing and marketing of natural gas in the country.
The JV will assume the administration of the existing gas contracts to KG-D6 customers. It will also pursue other opportunities, including LNG import, the companies added.
Currently, the KG-D6 customers are in contract with Mukesh Ambani-controlled Reliance Gas Transportation Infrastructure for transportation of gas and with RIL for sale of gas.
BP India’s region president Sashi Mukundan, also the country head, said the idea was to see the RIL-BP joint venture company emerge as a major participant in meeting India’s growing gas demand. “The need for assured gas supplies to fuel this growth is crucial. The RIL-BP partnership is in a unique position to contribute significantly in this respect,” he noted in a statement here.
India Gas Solutions will commence operations with 30 employees, seconded from BP and RIL, with deep experience in the gas business -- both in India and internationally.
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This February, BP acquired a 30 per cent stake in RIL’s flagship KG-D6 gas fields in a $7.2-billion deal to buy stakes in 21 blocks of Reliance. The deal was completed in August.
The company’s board comprises six members with equal representation from BP and RIL. Kris Sliger from BP will be appointed chairman, while RIL’s Bibhas Ganguly will be made the vice-chairman. The executive team comprises Hiten Mehta (BP) as the chief executive officer, Suresh Manglani (RIL, chief financial officer, Amit Mehta (RIL, chief operating officer) and Brian Dodson (BP, chief commercial officer).
RIL executive director P M S Prasad said the demand for gas had been growing at an exponential rate. “We anticipate natural gas to emerge as the preferred choice of fuel, given its properties as a cleaner and sustainable fuel source,” he noted in a statement.