RIL to finalise gas pricing agreement by August-end

Mumbai, Apr 9 (UNI) Index-heavyweight Reliance Industries (RIL) today said that it will finalise its gas pricing agreement with all customers by August-end and seek government nod after that.

The company adds that the KG D6 gas will be supplied to existing gas deficient fertiliser and power plants. RIL will spend Rs 25,000 to 30,000 crore in two gas grids covering 10,000 km and Rs 17,000 crores in the Kakinada-Hazira-Jamnagar pipeline.

RIL is looking at building the southern gas grid and its east-west gas pipeline will be ready by March next year. The new units are however unlikely to get KG Basin gas initially.

Reliance targets to become a fully integrated Exploration and Production player by 2011-12. The petchem major will fund the gas pipeline project via 70 per cent debt and 30 per cent equity. The high debt funding is mainly due to 12 per cent cap on marketing margins, the company disclosed in an official statement.

UNI