The Bombay High Court on Monday ordered Mukesh Ambani's Reliance Industries to sell natural gas from fields in the Krishna- Godavari Basin off eastern India to a company owned by his younger brother, Anil, for 44% less than the government-set price. Reliance, which began producing gas from the KG-D6 field in early April, sells the gas to government-approved power and fertilizer companies for $4.20/MMBtu. But the court asked it to honor a 2005 agreement to supply 28 MMcm/d to Reliance Natural Resources at $2.34/MMBtu for 17 years. Output from the field is expected to peak at 80 MMcm/d by December. The court said "the two companies should negotiate a new agreement within a month, with price, quantity and tenure as a must." Neither of the firms would comment.
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