Reliance gas to flow by June,2008

Kakinada, Mar 19 (UNI) Refuting speculations that Reliance Industries will take the entire gas from one of its biggest discovery in the Krishna-Godavari basin off the coast of Andhra Pradesh to West coast, a top official of the company said they want to fully satisfy the demand of Andhra customers.

'' Let there (first) be price discovery ( of the gas) as per guidelines of Government of India......we are a contractor to the GoI..... more than us GoI has a stake in the right price,'' of the gas from Dhirubhai-1 and Dhirubhai-3 fields in block KG-D6, Reliance CEO (oil and gas) P M S Prasad said.

'' We had proposed to the Andhra Pradesh government six months ago to let Reliance lay a network of pipelines to supply natural gas for household consumption in most major towns of the State,'' he said, adding natural gas will come cheaper than the LPG now being used in the country.

The company will spend USD 5.2 billion in bringing to production the gas from KG by June, next year, Prasad said, adding its onshore terminal at Gadimoga will be ready by May, 2008. The work on 1,400- km pipeline from Gadimoga in Kakinada to Jamnagar in Gujarat is on schedule and it will be ready to transport gas through four states of Andhra Pradesh, Karnataka, Maharashtra and Gujarat, he added.

Replying to a question at media conference held at the company's onshore terminal complex, Prasad said the USD 5.2 billion project is being financed through 2 billion USD of external commercial borrowings and the remaining 3.2 billion USD from internal accruals.

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