RIL pumping out over 50 mmscmd gas from KG Basin: Govt

Reliance Industries (RIL) is currently producing over 50 million standard cubic meters per day (mmscmd) of natural gas from the KG Basin D-6 fields, the government said today.

"The current gas production from the D-1 and D-3 gas fields is about 48 mmscmd and from MA (oil) field is about 2.3 mmscmd in the KG-D-6 Block," Minister of State for Petroleum and Natural Gas Jitin Prasada told the Lok Sabha in a written reply.

The gas produced from the KG-D6 Block is being allocated and sold as per the directives of the Empowered Group of Ministers, he said, adding the peak gas production of about 80 mmscmd from the field is likely to be achieved by the middle of next year.

To a separate question, Prasada informed that the production sharing contract (PSC) signed between the government and the contractors (like RIL) under new exploration licensing policy (Nelp) does not provide for fixing of marketing margins on gas sale by the government.

"The government has not, till date, fixed or approved the quantum of marketing margins for sale of natural gas by any contractor," he said, adding "the issue is discussed and decided between the seller and the buyer, as a part of the settlement of the terms and conditions of the gas sales and purchase agreement (GSPA)."

State-run power utility NTPC had raised the issue of levy of $0.135 per million British thermal unit as marketing margins by RIL on the gas produced from the KG-D6 Block.