Cairn India to Begin Commercial Gas Sales

Cairn India will start commercial gas sale from it Rajasthan block to fertilizer companies in Gujarat. The Economic Times reports that the sale is expected to start from Saturday after a formal announcement by India’s oil minister Veerappa Moily.

The company is expected to get about $5 a unit price for the gas, which is the prevailing rate charged by state oil firms to consumers in Rajasthan and south Gujarat, Economic Times said citing an oil ministry official.

"Initial sale will be limited to 5 million standard cubic feet per day. But, we have identified gas prospects in the block, which will enhance gas output significantly in near future," the newspaper said quoting a senior executive of Cairn India, who did not wish to be named. 

The company has the infrastructure ready in the shape of eight-inch diameter gas pipeline from Barmer to Jamnagar that will carry gas.