Adani Group May Pay Premium for RIL CBM

The Adani Group has offered to buy gas from Reliance’s coal bed methane blocks for its city gas distribution projects at price higher than price of existing domestic gas, Economic Times said Monday.

In addition to Adani few other buyers have approached RIL to source gas for its market in Ahmedabad, Vadodara and Faridbad.

Adani has backed RIL’s formula that will enable to charge about $13 mmBtu, the report said.

Reliance is seeking approval from oil ministry to sell CBM from its blocks on the formula that state energy firms use to sell LNG.  

However, government insists it will identify the customers with whom the company can negotiate, a move RIL says severely limits company's ability to sell gas at market rate.