Gas prices are expected to climb again in October: Reliance
Gas prices are expected to climb again in October: Reliance
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Reliance Industries Ltd, controlled by billionaire Mukesh Ambani,  anticipates natural gas prices in India to rise again in October, as its gas exploration division reaps the benefits of a global energy price boom that has already pushed rates to new highs.

Sanjay Roy, senior vice president for exploration and production, stated in an investor call following the presentation of the conglomerate's quarterly profits on Friday that the price cap for its KG-D6 gas sales will rise over the current USD 9.92 per million British thermal units. Every six months, the government sets gas prices depending on international rates.

From April 1, the price of gas from old or regulated fields was more than doubled to a record USD 6.1 per Metric Million British Thermal Unit (mmBtu), while the price of gas from challenging resources, such as those in deepwater, was increased to USD 9.92 per mmBtu. In October, rates will be adjusted. The price of gas from state-owned Oil and Natural Gas Corporation (ONGC) old fields is expected to rise to around USD 9 per mmBtu, with the cap for challenging fields reaching double digits. "In fact, prices have risen, as we know the gas markets are fairly tight and prices have been elevated, and that effect is now reflected in revenues as well as increased EBITDA margins," Roy said.

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