RIL-BP seeks bids for 6 mmscmd of natural gas from KG D6 block

The consortium of Reliance Industries Limited (RIL) and BP has sought bids for 6 million standard cubic meters a day (mmscmd) of natural gas from its KG D6 block off the eastern coast. The electronic auction will be held on May 19, 2023 for the gas from the MJ field, which will begin supplying from June 1, 2023. The bidders are expected to quote a variable above the JKM price, the spot market benchmark for liquefied natural gas delivered to Japan and South Korea. The JKM price is around USD11.55 per million British thermal unit at present. A minimum volume of 10,000 standard cubic meters per day can be bid while the maximum bid volume would depend on the bidders’ net worth and past gas consumption. For bids up to 1 mmscmd of gas, bidders do not need to meet any minimum net worth or past gas consumption criteria. The bidders can seek volume for a tenure of three or four or five years. The new supply from RIL-BP fields will add to the domestic production, helping cut imports that comprise about 44 per cent of the country’s total gas consumption.