RIL trashes govt move to appoint GAIL as D6 marketer

GAIL,it said,was RILs competitor in oil and gas exploration and could not be accorded preferential treatment and any such step would vitiate the level playing field that was being promoted through the NELP rounds.

RIL has contested that handing over the gas to GAIL would hamper future market price discovery process and add extra costs in the form of double taxation and marketing margin. Creating a single marketer for gas would result in severe market distortions and would risk the basic premise of the PSC of market mechanism for hydrocarbons.

The landfall price for D6 gas has been fixed by an EGoM at 4.2 per mmBtu that would be uniformly applicable to all users. However,court disputes are prohibiting RIL from selling gas and some members of the EGoM want an injunction for sale by a third party.