The Mukesh Ambani led Reliance Industries Ltd. (RIL) has announced that it will sell gas produced from its KG Basin at a price which will be one-fifth of the international crude price. The RIL said it will sell gas at $4.2 per million British thermal unit (mmBtu) as per the wish of the Indian government, even though the international gas prices are hovering around $14 per million British thermal unit. This announcement was made by Mr Ambani himself at the company's 34th annual general meeting (AGM) recently.

 

The chairman of RIL Mukesh Ambani went on to underscore that the sale of gas, which is to commence this year, would be at a wellhead price equal to $25.2 per barrel of crude compared with the current market price of $135 per barrel. Sources pointed out that Mr Mukesh Ambani was only trying to emphasize on the fact that they will be sell gas quite cheap. ‘International prices of gas are now ruling at around $14 mmBtu. We will be selling much cheaper despite a surge in costs incurred in the exploration business,’ the sources added.