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Reliance expects increase in gas prices again in October

Increase in gas prices

Reliance expects increase in gas prices

Increase in gas prices – Reliance Industries Ltd anticipates natural gas prices in India to rise again in October, as its gas exploration division reaps the benefits of a global energy price boom that has already pushed rates to new highs. 
 
The Mukesh Ambani-controlled conglomerate anticipates its KG-D6 gas sales price cap to grow above the current USD 9.92 per million British thermal units. In an investor call following the announcement of its quarterly earnings on Friday, Sanjay Roy, senior vice-president for exploration and production, said. 
 
Every six months, the government sets gas prices depending on international rates. From April 1, the price of gas from old or regulated fields was more than doubled to a new high of USD 6.1 per mmBtu, while the price of gas from challenging fields, such as those in deepwater, was raised to USD 9.92 per mmBtu. In October, rates will be adjusted.

Increase in gas prices

The price of gas from state-owned Oil and Natural Gas Corporation (ONGC) ageing fields is expected to rise to around USD 9 per mmBtu, with the cap for challenging fields rising to double digits. 
 
“In fact, prices have risen, as we know the gas markets are fairly tight and prices have been elevated, and that effect is now reflected in revenues as well as increased EBITDA margins,” Roy explained. 
 
“We now expect ceiling prices to rise to USD 9.92 in the first half of the current fiscal year (which began on April 1), as previously announced. Furthermore, we anticipate rises from there in the second half of the year.” 
 
In the fiscal year 2021-22 (April 2021 to March 2022), revenue from the segment increased by 3.5 times to Rs 7,492 crore, while EBITDA increased by 21 times to Rs 5,457 crore.

Reliance Group

Reliancebp plans to start production from the MJ field in the same block by the end of the year, after commissioning R-Cluster and Satellite fields in December 2020 and April 2021, respectively. 
 
Production is estimated to reach 30 mmscmd in 2023 once MJ begins. 
 
“So the MJ field is on track,” Roy explained. “We’ve completed all of the wells and intend to finish the lower and higher completions in the coming months. The FPSO is on schedule. It’s coming together, and we expect the wells to be completed by the end of the year.” 
 
Despite the tight weather window, the company “expects to get this field on stream by the end of the year,” he said, adding that the company is also doing exploration in block KG-DW1, which is adjacent to KG-D6. 

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