Reliance is largest R-LNG user

Vol 13, PW 4 (30 Jul 09) News in Brief

Despite operating the prolific D6 field Reliance is now the largest user of spot R-LNG in India! A Reliance source tells us that from early July the company has been buying up to 9m cm/d spot R-LNG from the LNG terminal at Hazira operated by Shell and Total and the Dahej terminal operated by Petronet-LNG at an average price of $5.5/mmbtu.

“We buy from whoever gives us the best price,â€‌ says a source. Reliance, we hear, is using this spot R-LNG at its Jamnagar refinery and its petrochemical complex at Hazira, both in Gujarat, and Patalganga in neighbouring Maharashtra.

Reliance complains it is forced to use expensive R-LNG because the government does not permit use of D6 gas priced at $4.2/mmbtu! “Today our D6 production potential is 60m cm/d but we produce only around 30m cm/d because that’s the total capacity of the customers chosen by the government,â€‌ says a Reliance source. “We have not been allocated any D6 gas by the government.