Reliance Industries Ltd (RIL) has raised by 25 per cent the marketing margin on the natural gas it will sell from its eastern offshore KG-D6 field.
RIL, which is to begin gas production from the Krishna Godavari basin KG-D6 fields this week, has raised the marketing margin to USD 0.15 per million British thermal unit from USD 0.12 per mmBtu earlier, a source said.
The rate, which would be charged over the USD 4.20 per million British thermal unit base gas price, is however lower than the USD 0.18 per mmBtu margin charged by state-run GAIL.
The increase, he said, was due to the additional risk of 'ship-or-pay', a obligation under which the company would be obliged to transport the committed volumes or pay for the gas.
A company spokesperson did not offer any comments.
RIL has communicated the new marketing margin in the revised Gas Sales and Purchase Agreement (GSPA) to 12 identified fertiliser companies that will consume KG-D6 gas.
The fertiliser companies have opposed the revision but the two sides have considerably narrowed their differences and are likely to sign the GSPA by weekend.
The delivered price, including taxes and transportation charges, of Reliance gas in Andhra Pradesh would be USD 5.34 per mmBtu while in Maharashtra it would cost USD 5.87. In Gujarat it would cost USD 5.87 and along the HVJ pipeline USD 6.21.
