Business Daily from THE HINDU group of publications
Monday, Aug 06, 2007
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Business Daily from THE HINDU group of publications Monday, Aug 06, 2007 ePaper |
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Petroleum Corporate - Alliances & Joint Ventures Marketing - Channels and Franchises
RIL seeks early decision on gas pricing formula Wants to be majority partner in jt venture Cos to co-operate on marketing CNG, LPG Piped natural gas to households, industries planned IOC owns more than half of total number of PSU outlets
Richa Mishra New Delhi, Aug 5 The ongoing court case in Mumbai and the unresolved issue of gas pricing of Reliance Industries Ltd’s (RIL) Krishna Godavari (KG) find seem to be coming in the way of the city gas distribution joint venture project between IOC and RIL. Besides taking on the Anil Ambani Group and NTPC on the legal front, Reliance is also battling in the Government corridors for reaching an early decision on gas pricing formula. Official sources said that no further discussions on the joint venture can take place till the issues are resolved, “as they have a direct impact on pricing and marketing of gas.” Talks between IOC and RIL are at an advanced stage, with both companies trying to reach an understanding on who the majority partner would be. The joint venture is expected to leverage the availability of gas from Reliance’s find off the Andhra coast and IOC’s extensive retail outlet network. IOC, with 16,450 retail outlets, owns more than half of the total number of retail outlets run by PSUs (about 30,000). While it is in favour of a 50:50 joint venture, RIL wants to be the majority partner. The two entities have been negotiating to resolve the issue. Once a decision is reached on the project structure, the two would enter into a general MoU, which would form the basis of the projects. The companies would then set up a steering committee to identify the cities for setting up the distribution networks for piped natural gas to households and industries. The areas of co-operation include use of existing retail outlets for marketing CNG and LPG used by automobiles.
Related Stories: Ambanis court battle centres on production sharing contract Decision on KG gas pricing within a month Gas producers, consumers present case on pricing Decision on RIL’s KG gas pricing formula soon IOC may partner Reliance for city gas distribution More Stories on : Petroleum | Alliances & Joint Ventures | Channels and Franchises | Courts/Legal Issues | Reliance Industries Ltd
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