Reliance seeks 3.6 mmscmd gas from PMT fields

Reliance seeks 3.6 mmscmd gas from PMT fields

January 04, 2008 15:08 IST
Reliance Industries Ltd [Get Quote] has sought a minimum supply of 3.6 million standard cubic meters per day of gas for its petrochemical plants from the Panna/Mukta and Tapti fields, from which gas has been diverted by the government to state-run GAIL India [Get Quote].

Reliance along with state-run Oil and Natural Gas Corporation and BG Group of UK are the operators of the PMT fields lying in Mumbai offshore and till last month marketed gas from the fields in proportion to their shareholding.

The Mukesh Ambani-run firm's petrochemical plants got 5.2 mmscmd of gas from the PMT fields, RIL President and CEO -- Petroleum P M S Prasad wrote to petroleum secretary.

"PMT joint venture currently has commitment to supply around 2 mmscmd to RIL petrochemical plant at Hazira and about 1.9 mmscmd to (its subsidiary) IPCL [Get Quote] plants at Gandhar and Vadodara. IPCL have contract for additional supply of 1.3 mmscmd from PMT gas," Prasad wrote on December 24.

Oil ministry last month cancelled almost all contracts for sale of gas from PMT fields and diverted it to GAIL India Ltd for re-sale at higher price.

GAIL is to finalise sale contracts in line with the gas utilisation policy that priorities allocation to fertiliser, petrochemical, existing power plants and city gas distribution units in that order.

Reliance, he said, was in favour of gas being given to priority sectors and was willing to use a mix of alternate fuels and gas at its petrochemical plants.