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    RIL Wants a price of $13 per MMBTU for its CBM

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Summary

Reliance Industries has sought the government’s approval to sell its coal bed methane gas produced from Madhya Pradesh blocks at a price close to $13 mmBtu

by: Shardul

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Asia/Oceania

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RIL Wants a price of $13 per MMBTU for its CBM

Reliance Industries has sought the government’s approval to sell its coal bed methane gas produced from Madhya Pradesh blocks at a price close to $13 mmBtu, Press trust of India reported.

At $100 per barrel oil price, CBM from RIL’s Sohagpur coal-bed methane (CBM) blocks in Madhya Pradesh will cost $12.93 per mmBtu.

The pricing formula RIL has proposed for CBM is different from the one adopted for natural gas from the company’s eastern offshore KG-D6 block. KG-D6 gas at cap crude oil price of $60 per barrel, translates into a sale price of $4.205 per mmBtu. Sohagpur CBM at $60 per barrel oil price would be $7.862 per mmBtu.

RIL will charge $0.15 per mmBtu as marketing margin over and above the CBM price and customers would also have to pay for taxes/duties and transportation tariff.

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