The Hindu Business Line : Anil Ambani group co says Reliance’s KG gas is its source

The Anil-Ambani promoted Reliance Fuel Resources Ltd (RFRL) has said that the Mukesh Ambani-led Reliance Industries Ltd’s (RIL) Krishna Godavari (KG) gas is its source for the proposed pipeline project.

RFRL’s plans to lay a Rs 16,000-crore natural gas pipeline to bring gas from the KG basin to its proposed power plant at Dadri in Uttar Pradesh has been awaiting Government nod for almost a year, as the Petroleum Ministry wanted the company to first confirm the source of gas supply.

Citing a Mumbai High Court order, RFRL has approached the Petroleum Ministry seeking approval for setting up a gas pipeline from Kakinada in Andhra Pradesh to Dadri, sources told Business Line.

The High Court issued an order on May 3 restraining RIL from creating third-party interests or signing contracts and/or use or supply the first 28 million standard cubic metres per day (MMSCMD) of gas out of the estimated 40 MMSCMD initial production from the KG block, which is committed to the Anil Ambani group.

The proposal for laying the gas pipeline by the Anil Ambani group seems to be largely dependent on the arrangement between RIL and Reliance Natural Resources (RNRL), another Anil Ambani company, for sale and purchase of gas.

In its earlier application too, RFRL had shown RIL fields off the Andhra coast as the source of gas supply for the pipeline network.

RFRL has also said that the proposed pipeline is contemplated to feed the Dadri gas power plant. Therefore, both the source of gas supply and users have been identified.

It has also proposed to set up city gas distribution networks in cities falling along the pipeline for supplying natural gas to industrial, commercial, domestic and automobile sectors.

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