Reliance Natural Resources Ltd (RNRL) and Reliance Industries Ltd (RIL) on Thursday submitted their revised gas supply master agreement to Bombay High Court, television news channels reported. On June 25, the two warring companies signed the revised pact, raising hopes their long drawn dispute may come to an end.
The new agreement entails supply of 28 metric million standard cubic metres per day of natural gas for 17 years at $4.20 per million British thermal unit.Anil Ambani-controlled RNRL had approached the court seeking the enforcement of a 2005 family Memorandum of Understanding with elder brother Mukesh Ambani-controlled RIL, asking the latter to sell it 28 metric million standard cubic metres per day of natural gas at $2.34 per million Btu.
RIL, on the other hand, expressed its inability in honouring the gas price fixed under the MoU after government set gas sale price at $4.2 per million Btu and signed a production sharing contract with the company to that effect. On May 7, Supreme Court said government policy on setting natural gas price is binding on the producers.