NTPC signs pact with RIL for buying part of K-G D6 gas

NTPC signs pact with RIL for buying part of K-G D6 gas
PTI
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First Published: Thu, Sep 24 2009. 12 14 PM IST
Updated: Thu, Sep 24 2009. 12 14 PM IST
New Delhi: State-run NTPC, the country’s biggest power producer, on Thursday signed a pact with Mukesh Ambani-led Reliance Industries to buy a part of natural gas allocated to it from K-G D6 fields at a rate of $4.2 per million metric standard cubic meters (mmscmd).
NTPC will buy 0.61 mmBtu of gas a day for its plant in Anta in Rajasthan, an industry official said. The gas will start flowing in the next 7-10 days, the official added.
The volumes are less than one-fourth of the 2.67 mmscmd gas the Government had allocated to NTPC.
The state-run power utility signed a Gas Sales and Purchase Agreement (GSPA) with RIL and a separate Gas Transportation Agreement with Reliance Gas Transportation Infrastructure Ltd.
The government had last year allocated 2.67 million cubic metres per day of K-G D6 gas to NTPC’s Kawas and Gandhar in Gujarat and Anta power plants in Rajasthan
NTPC does not want to take RIL gas for Kawas and Gandhar plants because of the pending legal dispute over supply of gas at $2.34 per mmBtu price quoted by RIL in a 2004 tender.
“Against an allocation of 2.67 mmscmd, GSPA for only 0.61 mmscmd of gas for Anta unit will be signed for now,” he said.
“Government will have to take a call on reallocating the remaining gas to NTPC’s other plants.”
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First Published: Thu, Sep 24 2009. 12 14 PM IST
More Topics: Ntpc | Reliance | Gas | KG basin | Buy gas |