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RIL to charge higher margin on gas from KG-D6 fields

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Press Trust Of India New Delhi
Last Updated : Jan 19 2013 | 11:26 PM IST

Reliance Industries has raised the marketing margin it will charge on selling natural gas from eastern offshore KG-D6 fields, but the revised rate is still lower than the marketing margin of state-run GAIL India.

RIL, which is to begin gas production from the Krishna Godavari basin KG-D6 fields this week, has raised the marketing margin to $0.15 per million British thermal unit (mmBtu) from $0.12 per mmBtu earlier, an official said.

The rate, which would be charged over the $4.20 per mmBtu base gas price, is, however, lower than the $0.18 per mmBtu margin charged by state-run GAIL.

Unlike RIL, GAIL has a 5 per cent escalation in the margin every year.

The 12 fertiliser firms shortlisted to get KG-D6 gas on priority, have opposed the revision in the marketing margin that RIL communicated through the revised Gas Sales and Purchase Agreement.

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First Published: Mar 24 2009 | 1:03 AM IST

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