Oil Min meet to discuss RIL gas sales contracts

The petroleum and natural gas ministry has summoned Reliance Industries (RIL) and consumers using gas from its KG-D6 field for a meeting later this week to decide on extending sales contracts beyond March 31, when RIL's five-year contracts to sell eastern offshore KG-D6 gas to fertiliser units, LPG extraction plants and power stations end.

The company had proposed to sign new contracts with the users on revised higher gas prices that were to come into effect from April 1 but the move has been scuttled as the Election Commission on Monday asked the government to delay raising prices until the completion of elections. Sources said the ministry had called officials of RIL, Fertilizer Association of India, state gas utility GAIL and Association of Power Producers to discuss the extension. Deferring the new price regime for a few months will not have a material bearing on 85 per cent of the gas produced in the country.