RIL crosses 10 bcm gas sales in less than 6 months

Mukesh Ambani-led Reliance Industries has achieved a new milestone of crossing 10 billion cubic metres (bcm) of natural gas sales from its eastern offshore KG-D6 fields in less than six months period this fiscal.

Reliance Industries (RIL), which had cumulatively sold over 14 bcm of gas in full 2009-10 fiscal, crossed the 10 bcm cumulative sales last week, sources in know of the development said.

Reliance produces just under 60 million standard cubic meters per day from its prolific KG-D6 fields in the Krishna Godavari basin, off the Andhra coast.

The gas, priced at $4.205 per million British thermal unit, is mostly sold to power and fertilizer units. Power plants get a little under 28 mmscmd of KG-D6 gas while urea manufacturing fertiliser plants draw over 14 mmscmd. Refineries get over 10 mmscmd, steel plants over 4 mmscmd and the remaining is split between city gas projects, petrochemical plants and LPG units.

Reliance had last year toppled state-owned Oil and Natural Gas Corp (ONGC) to become the largest seller of natural gas in the country.

ONGC sells under 50 mmscmd of gas.

Reliance, which begun gas production from KG D-6 on April 2, is targeting a peak output of over 80 mmscmd from fields sometime in 2012.

ONGC's majority of gas production comes from its Basin and Mumbai High fields. The two fields produce about 42 mmscmd.