Indian Oil Becomes Top Bidder For Reliance’s KG Gas In Second Auction

The largest oil company in India, Indian Oil Corporation (IOC), has managed to be the highest bidder for half of the natural gas that Reliance Industries and its partner, BP from UK, offered in the most recent auction of the fuel needed to create CNG, generate electricity, and fertiliser.

As per reports, IOC got 2.5 million standard cubic metres per day out of the 5 mmscmd of gas auctioned last month. IOC bid this volume on behalf of seven fertiliser plans and it was the top bidder even in the previous auction of gas from the eastern offshore KG-D6 block of Reliance-bp. 

Meanwhile, as per reports, city gas companies including Mahanagar Gas, Indian Oil Adani Gas, GAIL Gas, Torrent Gas, and Haryana City Gas secured a total of 0.5 mmscmd of gas for turning into CNG for sale to automobiles and piped to household kitchens for cooking purposes.

Reports also inform that State gas utility GAIL and refiner Hindustan Petroleum Corporation (HPCL) got 0.6 mmscmd each while Gujarat State Petroleum Corp (GSPC) walked away with 0.5 mmscmd and Shell another 0.2 mmscmd.

According to media reports, the e-auction started on 19 May and ended on 23 May. It is being considered as the longest duration of an auction since the time operators were allowed to sell fuel through open tender.