(ET)
With gas output from its fields not matching commitments in past, Reliance Industries is offering supply-or-pay contracts for natural gas it plans to produce from newer fields beginning mid-2020, with an obligation to pay if it is unable to supply.
Reliance and its partner BP plc of UK in a notice inviting offer (NIO) for sale of gas from R-Series fields in the KG-D6 block in the Bay of Bengal has for the first time offered to pay the buyer for the purchase of alternate fuel for the default quantity. This clause is in addition to the take-or-pay clause requiring the buyer of gas to offtake the committed quantity or pay for it.
“If a shortfall quantity arises in a quarter, then, sellers shall reimburse buyer as liquidated damages for the purchase by buyer of a quantity of gas equal to such shortfall quantity,” according to the gas sales purchase agreement (GSPA) accompanying the NIO.
