Reliance Industries opposes uniform marketing margin for natural gas
Risk sharing in contracts for regulated gas produced from ONGC/OIL fields, called APM, cannot be compared with that of KG-D6 where sellers have taken substantially higher risks.
"It would be completely incorrect to have uniform marketing margin disregarding differences in associated costs and risks assumed by different entities," it said.
RIL says state-owned GAIL has been levying marketing margin on the sale of non-APM gas in the range of 18-20 cents and more than 20 cents on imported LNG.
Marketing margin for KG-D6 gas has been agreed between buyers and sellers for five years as was the USD 4.2 per mmBtu price of gas fixed by the government.
While the government has clearly said no to reopening of gas price before expiry of the five year signed period, acceptance of PNGRB recommendations would mean the signed contracts between buyers and sellers are reopened before the five year period.
RIL said there was no legal basis for the government to regulate marketing margin as it relates to costs and risks associated with marketing of gas beyond the delivery point, where the gas produced from a field is sold.
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