Reliance-BP invites bids for gas from KG-D6, priced against int'l benchmark

Reliance Industries and its partner UK's BP Plc recently invited companies to bid for incremental gas it plans to produce from the second-wave discoveries in the KG-D6 block, pricing them for the very first time against an international gas benchmark.

While Reliance-BP had in November 2019 sold the first 5 million standard cubic meters per day of gas from the R-Series field in the KG-D6 block, the duo has now invited bids for 7.5 mmscmd of incremental output that is likely to be available from February next year, according to a notice inviting offer.

They have priced the first 5 mmscmd of gas against Brent crude oil but now they are seeking rates equivalent to JKM or Japan/Korea Liquefied Natural Gas Import Price.

Bidders have been asked to "quote the variable denoted as 'V' in USD per million British thermal unit (MMBtu) terms."

"The gas price (in USD/MMBtu (GCV)) shall be = JKM + V," the notice said.

GCV stands for gross calorific value.

 

BS