Bloomberg: Gas at $8 May Lure Reliance to Start New India Fields

Reliance Industries Ltd. (RIL), sitting on untapped natural gas reserves off India’s east coast, will be able to generate profit from new fields if the government agrees to double prices, a person familiar with the matter said.

At $8 per million British thermal units Reliance will earn a profit margin of about 15 percent from fuel trapped more than a mile deep in the newer pockets of KG-D6, said the person, who asked not to be identified, citing rules. While Reliance sells gas from the basin at a government-set price of $4.20, at least $7 is required to break even on the new wells, the person said.  MORE