New gas pricing policy to be uniform for all: Moily

NEW DELHI: Setting aside the ongoing speculation over Reliance Industries Ltd being denied the higher gas price from April 1, 2014, petroleum minister M Veerappa Moily on Thursday said the new gas pricing policy will apply uniformly to all.

“There are no grey areas. The policy which we have adopted (based) on the recommendation of the Rangarajan Committee will be applicable to everyone,” he told reporters on sidelines of the Global Health Safety and Environment Conference organised by Cairn India.

However, Moily refused to be drawn into the issue of RIL being denied a higher price of gas pro- duced from its main fields in the eastern offshore KG-D6 block till the dispute over the reasons for output not matching targets is resolved.

Asked if the new price of about $8.4 per unit will not apply to RIL’s currently producing D1&D3 fields that have produced much less than target, he said, “Don’t ask (me that). When I said (price will apply uniformly) did I qualify?”

The petroleum ministry is mulling applying the current rate of $4.2 per mmBtu for gas produced from Dhirubhai-1 and 3 (D1&D3) fields even after expiry of the current term on March 31, 2014. The ministry wants to find who is right and till then it is mulling if the new price should not apply to D1&D3 fields.

The Directorate General of Hydrocarbons believes output from D1&D3 fell because RIL did not drill its committed number of wells. RIL, on the other hand, blames unforeseen geological complexities for the fall in output.