Price determination of gas from KGD6 project soon

Mumbai, Apr 7: The price determination of gas extracted from Krishna Godavari Dhirubhai 6 (KGD6) project will be finalised in the next two to three months, a company official said.

Reliance Petroleum President and CEO P M S Prasad was addressing the media today on the KDG6 gas project, India's first deepwater gas development project.

"When operational, this highly cost-competitive project will double the nation's domestic gas availability," he said.

"Reliance Petroleum is involved in talks with various consumers in different sectors to evaluate the price factor," he added.

Reliance Petroleum is expected to extract 40 to 50 million cubic meters of gas in its first year of operations from this project.

"Work on the gas pipeline is also underway, Mr Prasad said.

''We are targetting completion of the east coast pipeline by March 2008,'' he said.

"Reliance Petroleum has invested 30,000 crore on the project," he added.

KDG6 project was awarded to Reliance Petroleum under NELP-1, covering an area of 7,645 sq km. The discovery was made in 2002, the world's largest gas discovery that year.

UNI