Reliance Industries Ltd May Tap into Gas Reserves if Price is Right

Bloomberg reported that Reliance Industries Ltd. may consider tapping into their unused natural gas reserves off India’s east coast if the government can offer attractive pricing.

As quoted in the market report:

At $8 per million British thermal units Reliance will earn a profit margin of about 15 percent from fuel trapped more than a mile deep in the newer pockets of KG-D6, said the person, who asked not to be identified, citing rules. While Reliance sells gas from the basin at a government-set price of $4.20, at least $7 is required to break even on the new wells, the person said.

To view the whole Bloomberg report, click here.