Reliance in talks with IOC, Gail for JVs
RIL is planning to sell gas through pipelines and CNG to automobiles.
By INDIATIMES NEWS NETWORK |
NEW DELHI: Reliance Industries on Monday said it is in talks with state-run firms Indian Oil Corp and GAIL (India) Ltd to form separate joint ventures for city gas distribution projects.
Reliance, which plans to produce 80 million standard cubic meters per day (mmscmd) gas from 2008-09 from its D6 field in Krishna-Godavari basin, is planning a foray into selling gas to households and commercial units through pipelines and CNG to automobiles.
"We are in talks with both. We have proposed to form a joint venture with GAIL where it has a network and permission to lay pipelines and supply gas to users. We are looking at a joint venture IOC in parts where the state-run company has strong retail network," Reliance Industries CEO (Oil and Gas) P M S Prasad told reporters here.
Reliance is keen on taking 51 per cent in the proposed joint ventures as it would be supplying gas for the City Gas Distribution projects.
But the proposed equity pattern has sparked-off concerns in the Petroleum Ministry, which feels the state-run companies should have the upper hand.
Sources said government directors on IOC Board last month forced the company to go back to negotiation tables when the proposal for IOC to take 49 per cent equity in the joint venture with RIL came up for consideration.
Reliance, which plans to produce 80 million standard cubic meters per day (mmscmd) gas from 2008-09 from its D6 field in Krishna-Godavari basin, is planning a foray into selling gas to households and commercial units through pipelines and CNG to automobiles.
"We are in talks with both. We have proposed to form a joint venture with GAIL where it has a network and permission to lay pipelines and supply gas to users. We are looking at a joint venture IOC in parts where the state-run company has strong retail network," Reliance Industries CEO (Oil and Gas) P M S Prasad told reporters here.
Reliance is keen on taking 51 per cent in the proposed joint ventures as it would be supplying gas for the City Gas Distribution projects.
But the proposed equity pattern has sparked-off concerns in the Petroleum Ministry, which feels the state-run companies should have the upper hand.
Sources said government directors on IOC Board last month forced the company to go back to negotiation tables when the proposal for IOC to take 49 per cent equity in the joint venture with RIL came up for consideration.
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Prasad, however, refused comments on the shareholding pattern.
He, however, said Reliance would being gas production from D6 by mid-2008. Reliance Industries is laying a pipeline from Kakinada in Andhra Pradesh to Ahmedabad in Gujarat to transport gas from the D6 field and has planned city gas distribution projects in cities along the route.
It also plans to lay pipelines from Kakinada to Tuticorin via Vijayawada, Nellore and Chennai and to Howrah in West Bengal.
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