(T.E.T)
Reliance Industries Ltd is seeking a minimum of USD 14 for selling natural gas being produced from coal seams in a block in Madhya Pradesh as it looks to cash in on the recent spike in energy prices globally. Reliance sought bids from users for the sale of 0.65 million standard cubic meters per day of gas from its coal-bed methane (CBM) block SP-(West)-CBM-2001/1 for a one-year period beginning April 1, 2022, according to a Notice Inviting Offer (NIO) published by the firm.
Bids have been sought at a premium over the base of 14 per cent of the Brent crude oil price. “A Bidder shall be required to quote the variable denoted as ‘V’ in USD per million British thermal unit terms as a positive number pursuant to the gas price formula” of “14% x Dated Brent + V,” the NIO said. The starting ticker for ‘V’ has been kept at USD 1 per mmBtu, which means bidders will have to quote at least USD 1 plus 14 per cent of dated Brent crude oil to buy the CBM gas.
