New Delhi: Reliance Industries Ltd is in talks with consumers over pricing of its gas from Krishna Godavari block. The firm is hopeful of finalising the details within next 2-3 months, said sources.
"The gas through pipeline will be cheaper as compared to supply through cylinders but again depend on the government to fix the prices," RIL President and CEO, PMS Prasad was quoted by PTI.
The company had discovered oil in KG D6 block last year. It has set aside $5.2 billion for the production of 80 million cubic metres of gas per day from the block.
The company expects by 2008, the gas from KG D6 would be available for commercial purposes. It aims to touch the peak production of 80 million cubic metres by 2009, a senior official told PTI.
Of the 40-50 million cubic metres of gas per day, about 10-15 million cubic metres would go to the Jamnagar refinery as captive consumption. The balance would be allotted to clients based on their needs.
"Customers from fertiliser industry would get priority, followed by power and heavy industries," RIL President noted.
RIL is planning to invest about $10 billion (about Rs 45,000 crore) in both down stream exploration and pipeline.
The work on the 1950-km pipeline from KG Basin will be completed in 2-3 years, covering 33 cities in 19 districts of Andhra Pradesh.
With inputs from PTI
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