Reliance Industries has cut by about 7% the minimum price it is seeking for the natural gas it plans to produce from newer fields in the Bay of Bengal KG-D6 block after key customers such as fertilizer plants protested over the high base price, sources said.
Reliance and its partner BP Plc of the UK is in the market seeking bids from potential users for the 5 million standard cubic metres per day of natural gas they plan to produce from the R-Cluster Field in KG-D6 block from mid-2020.
Bidders have been asked to quote a price, supply period and the volume of gas required. Dated Brent means the average of published Brent prices for three calendar months immediately preceding the relevant contract month in which gas supplies are made.
Sources said Reliance initially set a floor or minimum quote of 9% of dated Brent price — which meant that bidders had to quote 9 or a higher percentage for seeking gas supplies.
At USD 60 per barrel price, the gas price came to USD 5.4 per million British thermal unit (mmBtu).