KG-D6 Gas Block

The price of natural gas produced from difficult areas like KG-D6 of Reliance Industries is likely to be cut by about 14 per cent from next month in line with softening energy prices, sources said. For the six-month period starting October 1, the price of gas from deepsea and high-pressure, high-temperature (HPTP) areas is likely to be cut to around USD 10.4 per million British thermal unit from the current USD 12.12, they said. The government bi-annually fixes prices of the locally-produced natural gas -- which is converted into CNG for use in automobiles, piped to household kitchens for cooking and used to generate electricity and make fertilisers. Two different formulas govern rates paid for gas produced from legacy or old fields of national oil companies like Oil and Natural Gas Corporation (ONGC) and Oil India Ltd (OIL), and for newer fields lying in difficult-to-tap areas, such as deepsea. Rates are fixed on April 1 and October 1 each year. In April this year, the formula ..

State-owned Indian Oil Corporation (IOC), Adani-Total Gas Ltd and Shell were among the 29 companies that bid and bought natural gas to be produced from the deepest field in the KG-D6 block of Reliance Industries Ltd and bp, sources said. IOC walked away with almost half of the 6 million standard cubic meters per day of gas sold in an e-auction on Wednesday while state-owned gas utility GAIL bought 0.7 mmscmd, Adani-Total Gas Ltd 0.4 mmscmd, Shell 0.5 mmscmd, GSPC 0.25 mmscmd and IGS another 0.5 mmscmd, two sources with knowledge of the matter said. Reliance-bp on Wednesday held an e-auction for sale of gas from the MJ field in their eastern offshore KG-D6 block after incorporating the government's new marketing rules to give CNG-selling city gas companies first priority over supplies. The bidding saw participation from 41 companies from various sectors including city gas, fertiliser, oil refinery, glass, ceramics and traders, sources said adding unlike previous auction Reliance did

India's natural gas production jumped 19.5 per cent in June, as Reliance Industries Ltd and its partner BP Plc ramped up output from their eastern offshore KG-D6 block

India's natural gas production jumped 22.7% in April after Reliance Industries Ltd and its partner BP Plc ramped up output from KG-D6 block

RIL and its partner BP of the UK had offered 5.5 million standard cubic meters per day of additional gas in the auction for a flexible tenure of 3-5 years

The second of the three deep-water gas developments, planned jointly, was expected to start production in mid-2021

Reliance and its partner UK's BP invited companies to bid for incremental gas it plans to produce from the second-wave discoveries in the KG-D6 block

The fields were India's first deepwater gas field, which started production in April 2009. The fields were expected to cease production in 2015

RIL and partner BP are seeking bids from potential users for the 5 million standard cubic metres per day of gas they plan to produce from the R-Cluster Field in KG-D6 from mid-2020

Reliance Industries has so far made 19 gas discoveries in the KG-D6 block

The bidding was to happen on October 11, according to the bid document

Reliance and BP split Niko's share in proportion to their existing shareholding in the block

RIL has so far made 19 gas discoveries in the KGD6 block