Reliance to sell cooking gas at 33% discount to LPG prices

NEW DELHI: Reliance Industries (RIL) is all set to change the rules of domestic cooking gas business. The company, which has applied for gas distribution licences for 100 cities across the country, plans to supply at 33% discount to LPG price. The price of cooking gas is about Rs 300 for a 14.2-kg cylinder.

Speaking at the sidelines of the India Economic Summit, RIL chairman and managing director, Mukesh Ambani said, “Our gas would cost one-third less than that of LPG.” RIL has applied for gas distribution licences in 100 cities. The government is finalising a city gas distribution policy, which will strike a balance between consumer interest and returns to investors.

Speaking on the Krishna-Godavari basin, Mr Ambani said that the prospects of gas finds were bright. “We have drilled 32-33 wells and have made discoveries in more than 25 of them which indicates the potential of the KG basin,” he said. Mr Ambani added that India is likely to find more natural gas than oil in the future.

Gas production is likely to start by July 2008 from D6 gas field in the Bay of Bengal, which has in-place reserves of 50 trillion cubic feet (TCF).

The company has also revised its estimate of recoverable reserves from Dhirubhai 1 and 3 gas finds to 11.3 TCF from 8.3 TCF. It has already submitted its revised plan to upstream regulator Directorate General of Hydrocarbons earlier this month.

Mr Ambani said the expansion programme of the Jamnagar refinery would be competed by mid-2008. “All our projects are on track and the refinery expansion will be completed by the middle of 2008,” he said.