Reliance has started pumping gas from its KG basin. It took just 7 years to begin production from the date of discovery from the deap-sea krishna godavari basin block. RIL is expected to have revenue of $42 billion over its life of 11 years.
RIL has started signing gas sale agreement with many fertilizer companies. This will reduce the dependency on the expensive naphtha and gas imports. It will also bring down the subsidy in the fertilizer sector. The gas is already cheaper than panna/mukta and tapti fields.By 2010 field will be running at its full capacity.
India's energy import bill is going to reduce by 10% or around $9 billion annually because of the indigenously produced gas.
Reduced imports will make rupee probably stonger due to less demand for dollar to buy crude/LNG. Mounting trade deficit should also see some relief.
Current account deficit is expect to improve by 0.6% of the GDP. Reduced deficit should support fresh economic growth.
Energy landscape of india is going to change because idle power plant starved of fuel will be able to access this gas and will also help produce cheaper urea for agriculture.
Reliance share rose 5.3 % on account of this news.
Sunday, April 5, 2009
Reliance Natural Gas flows naturally
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1 comments:
This idea is good and it is very usefull for the people who want to use it.
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