RIL welcomes Govt decision of naming new customers KG D6 gas | business | Hindustan Times
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RIL welcomes Govt decision of naming new customers KG D6 gas

Reliance Industries on Tuesday welcomed Government decision of naming new customers for its KG basin D-6 gas saying this would help it maximize production for benefit of all stakeholders.

business Updated: Oct 27, 2009 21:30 IST

Reliance Industries on Tuesday welcomed Government decision of naming new customers for its KG basin D-6 gas saying this would help it maximize production for benefit of all stakeholders.

"We are glad to note that the Empowered Group of Ministers (EGOM) has additionally allocated 20 mmscmd of gas on a firm basis and 30 mmscmd of gas on a fallback basis from the KG D-6 block," a company spokesperson said.

RIL had last week warned of irreversible damage to the Krishna Godavari basin reservoir if it was forced to continue artificially restricting gas flow from the wells for want of Government named customers.

"With the additional allocation, we will be able to increase and maximize production for the benefit of all stakeholders," he said.

RIL had stated that production capacity from KG-D6 has far exceeded the 40 million standard cubic meters per day (mmscmd), for which buyers have been tied-up, and has asked the government to immediately name customers for an additional 25 mmscmd so as to avoid irreversible damage to the field reservoirs.

"The additional allocation will also increase the overall customer base for supply of gas thereby avoiding frequent changes in the production level from the block," RIL spokesperson added.

RIL had asked the government to name customers for 25 mmscmd on a firm basis and users for another 20 mmscmd on a temporary or fall-back basis.