Let us choose our gas buyers: RIL | business | Hindustan Times
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Let us choose our gas buyers: RIL

business Updated: Feb 18, 2009 23:13 IST
Anupama Airy

The government’s decision to allocate specific quantities of gas produced from the D6 gas fields in the Krishna Godavari basin to individual consumers in the power, fertilisers and other user industries has clearly not gone down well with the Reliance Industries Ltd (RIL).

Miffed with the government’s decision to identify customers for RIL to sell gas from its D6 gas fields, the company has told the petroleum ministry that marketing rights under the New Exploration and Production Policy (NELP) has been a major factor in its decision to take the risk of exploration of petroleum resources and invest $8 billion in the development of gas fields.

“The decisions by the empowered group of ministers has, contrary to NELP, sought to identify buyers and to even provide quantity allocations to these buyers,” said PMS Prasad, president and CEO (petroleum), RIL.

“The impact of these decisions are far reaching, not just for existing NELP contractors but also has implications for the government’s future NELP plans and in fact for private investment as a whole.”

“In the exigencies of current circumstances, we are left with no alternative but, for the time being, to accept the marketing priorities identified by the government and sell specified quantities of gas within the government nominated sectors of priority,” he said.