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RIL-BP Seeks Bids for 6mmscmd of Natural Gas from KG Block

The consortium of Reliance Industries and BP has sought bids for 6 million metric standard cubic meters a day (mmscmd) of natural gas from its KG D6 block off the eastern coast, according to the tender document

 

The electronic auction will be held on May 19 for the gas from the MJ field, which will begin supplying from June 1. Bidders are expected to quote a variable above the JKM price, the spot market benchmark for liquefied natural gas (LNG) delivered to Japan and South Korea. The variable can be a positive or negative number. The JKM price is around $11.55 per mmbtu 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 don’t need to meet any minimum net worth or past gas consumption criteria.

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