RIL Ready to Buy All CBM It Produces

Reliance Industries Ltd (RIL) has told the oil ministry it is willing to purchase all the coal bed methane (CBM) gas produced by the company for its own consumption, if there were no buyers for the fuel at the price based on the formula drawn up by the firm, Mint newspaper reported.

The pricing of CBM gas and the choice of customers to which this gas is to be allocated have led to differences between the government and RIL.

The company wants to charge the highest possible price its CBM gas can fetch and feels there may be firms outside those identified by the government from the so-called priority power and fertilizer sectors willing to pay those prices.