INDIAN ENERGY MIX
Reliance to start selling gas from coal beds
India’s government is said to have allowed producers freedom to set prices
New Delhi/Mumbai — Reliance Industries, owned by billionaire Mukesh Ambani, would start selling coal-bed methane from its central India block next month after the government allowed producers freedom to set prices, people close to the matter said. The company would begin with daily sales volumes of 400,000m³ of gas from coal seams in Sohagpur block in Madhya Pradesh state and gradually increase the volumes, said the people, who asked not to be identified, citing company rules. Reliance had sought bids from potential buyers to be submitted by April 24, they said. With this, Reliance becomes the third supplier of gas produced from coal seams after Great Eastern Energy and Essar Oil. In March, India’s federal government gave marketing and pricing freedom to producers of coal-bed methane to sell the fuel within the country as it seeks to attract investment to boost production. The country wants to increase the share of natural gas in its energy mix from the current 6.5% to 15% by 2020. ...
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