Sale of gas at $4.2 won't impact RIL margins: Quant Cap

Gagan Dixit of Quant Capital feels the fact that the finance ministry wants Reliance Industries to sell the quantity of its outstanding gas at the current price of USD 4.2 per mmbtu will have no significant impact in RIL's valuations.

Talking to CNBC-TV18, he says, "The outstanding gas is a very small part of the overall picture of the RIL KG-D6. As per Tuesday’s filing, the produced gas reserve is just 0.5 TCF (trillion cubic feet) of the 4.2 TCF, which is hardly 10 percent of the overall gas reserves in KG-D6. So, I don’t think it is going to make any significant difference because the remaining gas would be allowed at higher prices."  After doubling of natural gas prices was approved from April next year, the finance ministry suggested to the oil ministry to set a ceiling for the rates.   "The ceiling depends on how much is the ceiling that the government has in mind. I think if the USD 8-10 is a reasonable figure," Dixit says.