Deadline of 31st August to resolve Tapti gas row

Vol 8, PW 10 (11 Aug 04) News in Brief

Oil secretary Sushil Tripathi has ordered GAIL and a consortium of British Gas, ONGC and Reliance to resolve their dispute over the Tapti gas price by the end of this month.

The secretary has given us till 31st August to find a solution, a consortium source tells us. On 27th July, Tripathi met GAIL, British Gas and ONGC to try to thrash out a compromise over the consortiums decision to increase by 150% the price it sells Tapti gas to GAIL from $3.11 per mmbtu to $5.57 per mmbtu.

Later press reports said ministry officials ordered GAIL to reject the consortiums price hike. This is completely incorrect, adds our source.

The government would never ask GAIL to renege on the PSC! PMT partners reject GAILs contention that Reliances NTPC tender price of $2.97 per mmbtu should be a benchmark. You cannot establish a benchmark price by comparing available gas with gas that hasnt been brought to shore.