CORRECTION - RELIANCE

Reliance has taken objection to an item (GSPC anxious about DD West gas flow) in our last issue in which we said it is to blame for the (high) $14.2/mmbtu price that emerged from a price discovery exercise for Deen Dayal West gas.

Reliance clarified that it did not bid for the entire quantity of 5.24m cm/d on offer from GSPC but just for 4m cm/d at $14.2/mmbtu. Other companies, “bid a higher or equivalent price” and for higher or equivalent volumes of gas, said Reliance, and added: “Reliance is not driving the Deen Dayal West gas price.

” GSPC carried out its price discovery exercise between February 25 and March 22, receiving 53 offers from 37 companies for 75m cm/d against 5.24m cm/d it hopes to extract. Crude oil refiners like Reliance, city gas distributors like Adani Gas and power producers were among bidders.

Uncertainty clouds GSPC’s target to begin Deen Dayal West production from July this year.