State-run NTPC, India's biggest power producer, today 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 USD 4.2 per mmBtu. NTPC will buy 0.61 million metric standard cubic meters 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 USD 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."
NTPC, which unlike the 40-odd other customers of K-G D6 gas was initially opposed to paying USD 0.135 per mmBtu marketing margin to RIL, has agreed to pay the levy.
RIL can produce over 60 mmscmd of gas from K-G D6 fields but is restricting output to 37 mmscmd in the absence of offtake from existing customers like NTPC and failure of the government to name consumers beyond the initial 40 mmscmd.
Source: http://economictimes.indiatimes.com
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natural gas allocated to it from K-G D6 fields at a rate of USD 4.2 per mmBtu. NTPC will buy 0.61 million metric standard cubic meters 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 USD 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."
NTPC, which unlike the 40-odd other customers of K-G D6 gas was initially opposed to paying USD 0.135 per mmBtu marketing margin to RIL, has agreed to pay the levy.
RIL can produce over 60 mmscmd of gas from K-G D6 fields but is restricting output to 37 mmscmd in the absence of offtake from existing customers like NTPC and failure of the government to name consumers beyond the initial 40 mmscmd.
Source: http://economictimes.indiatimes.com
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