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Unhappy RIL Complains to Oil Min on CBM Gas Bids

  • Reliance Industries (RIL) has complained to the oil ministry that the priority fertiliser and power sectors have submitted "non serious" bids for its coal bed methane (CBM) gas, and has proposed the government still go ahead with the gas price formula submitted last September.

  • According to that formula, the CBM gas would be priced between USD 12-14/mmbtu.And here's the most interesting part: RIL has bid USD 12.31/mmbtu for all of the gas available for its petchem and refining operations. Ispat is the only other company that would be eligible for the gas if the government approves RIL's formula.The average bid from fertiliser companies is USD 2.75/mmbtu, and RIL seems very upset with RCF submitting a negative bid.Calling it "ridiculous" RIL has told the oil ministry that RCF wants to be paid for being supplied the gas. NTPC has reservations of paying more than USD 4.2/mmbtu, but the average bid from the sector is USD 6.6 a unit.

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