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Reliance Industries expects the global natural gas crunch and the gas price rally to continue benefiting India’s oil-to-telecoms conglomerate with more earnings in the coming months after higher oil and gas production and price realizations helped it deliver record quarterly earnings.
Reliance Industries, the biggest company in India led by Asia’s richest person Mukesh Ambani, expects India to raise the cap on the offshore gas sales by 60 percent in April, to $10 per million British thermal units (MMBtu), the group’s senior vice president for exploration and production, Sanjay Roy, said at the presentation of the Q3 results, as carried by Bloomberg.
The higher gas prices and the increased gas production from the Krishna-Godavari (KG) oil and gas fields in the Bay of Bengal drove higher revenues and core earnings for the conglomerate in the quarter ended December 31.
According to Roy, Reliance Industries and BP, its partner in the KG fields, expect to raise gas production to 30 million cubic meters per day next year, from 18 million cubic meters per day now.
In its quarterly earnings report, Reliance Industries said on Friday that the revenues of its Oil & Gas segment increased multi-fold in the quarter to December 2021, led by a ramp-up of gas production from the KG D6 block. Revenue growth was also supported by higher gas price realization in KG D6 and CBM blocks, the conglomerate said.
“The recovery in global oil and energy markets supported strong fuel margins and helped our O2C business deliver robust earnings. Our Oil & Gas segment delivered strong growth in EBITDA with volume growth and improved realization,” Mukesh Ambani, Chairman and Managing Director, said in a statement.
Ambani also noted Reliance Industries’ recent commitments to invest billions of U.S. dollars in renewables in India. The conglomerate plans to invest as much as $76 billion in green energy projects in India over the next 15 years, it said earlier this month.
By Tsvetana Paraskova for Oilprice.com
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Tsvetana is a writer for Oilprice.com with over a decade of experience writing for news outlets such as iNVEZZ and SeeNews.