RIL to charge higher margin on gas from KG-D6 fields

Reliance Industries has raised the marketing margin it will charge on selling natural gas from eastern offshore KG-D6 fields, but the revised rate is still lower than the marketing margin of state-run GAIL India. RIL, which is to begin gas production from the Krishna Godavari basin KG-D6 fields this week, has raised the marketing margin to $0.15 per million British thermal unit (mmBtu) from $0.12 per mmBtu earlier, an official said. The rate, which would be charged over the $4.20 per mmBtu base gas price, is, however, lower than the $0.18 per mmBtu margin charged by state-run GAIL. Unlike RIL, GAIL has a 5 per cent escalation in the margin every year. The 12 fertiliser firms shortlisted to get KG-D6 gas on priority, have opposed the revision in the marketing margin that RIL communicated through the revised Gas Sales and Purchase Agreement.