Reliance Inds to post muted Q2

8220;Most analysts have assumed Mukesh will be able to sell the gas at the government approved price of 4.2 per mmBtu,8221; said R.K. Gupta,managing director of Taurus Mutual Fund.

8220;If the court decides otherwise,there could be a significant impact on Reliance8217;s future results,8221; said Gupta,whose holdings include several oil and gas stocks,including Reliance.

Reliance Industries,which has interests in oil and gas exploration,petrochemicals,refining and retail,began pumping gas from its find in the Krishna Godavari basin in April,and this was expected to help it offset shrinking refining margins.

But the company has said it is producing only about 60 percent of its 60 million standard cubic metres a day mmscmd capacity,leading to the deferral of 100 million in monthly revenue from May,and a delay in peak gas output of 80 mmscmd by at least a quarter until April.

Reliance Industries imports liquefied natural gas at about 9 per million metric British thermal unit mmBtu to power its refinery in western India,a much higher price than if it were allowed to receive gas from its own field.

The government selects customers for the gas pumped by Reliance,which sells it at the state approved price of 4.2 per mmBtu. India has selected customers for only 40 mmscmd of gas.