Reliance Industries Ltd (RIL) has signed gas sale-purchase contracts with the 12 fertilizer firms. These firms have been chosen to receive the first produce from the RIL’s offshore Krishna-Godavari (KG) D6 fields on the east coast, a company official said. RIL is expected to start production from the KG basin gas fields in a few days.

 

Companies that signed gas sale-purchase agreement with RIL include Indian Farmers Fertilizer Cooperative (IFFCO), Krishak Bharti Cooperative, Tata Chemicals and Indo Gulf Fertilizer. As per the contract, RIL would sell gas to the companies at $4.20 per million British thermal unit (mmBtu). Besides, additional transportation charge would be levied depending on the distance and the terms of contract with the gas transporting firms such as GAIL and Gujarat State Petronet.

 

The fertilizer companies have also signed a separate gas transportation agreement with Reliance Gas Transportation India (RGTIL) for transporting the gas through its 1,396-km east-west pipeline from Kakinada to Bharuch. The fertilizer firms will also have to sign separate contracts with GAIL and Gujarat State Petroleum Corp for getting the gas delivered to their plants.