RIL surges 4% on gas output from KG basin

Reliance Industries today surged over four per cent on the Bombay Stock Exchange amid news that the company has begun natural gas production from its eastern offshore Krishna Godavari basin fields.

After opening on a firm note on the BSE, shares of RIL surged to an intra-day high of Rs 1,648.90 per cent, up 4.39 per cent over its previous closing.

RIL scrip was trading at Rs 1,637.90, up 3.70 per cent on the BSE in the afternoon trade.

The company has begun gas production from its deep-sea Krishna Godavari basin fields. The gas would boost power supply from idle electricity generators starved of fuel and produce cheaper urea for agriculture.

 

On the National Stock Exchange the scrip gained 4.28 per cent to a high of Rs 1,649. The scrip was later trading at Rs 1,639.15, up 3.66 per cent in the afternoon trade on the NSE.

The USD 8.83-billion (Rs 44,175 crore) project will double domestic natural gas production when the field hits its peak output of 80 million cubic meters per day in 2010.

The gas output will start at 10 mmcmd and rise by the same volume every month to reach 40 mmcmd by July-end.