Press Trust of India / New Delhi Aug 13, 2009, 20:29 IST
Reliance Industries' (RIL) Bay of Bengal gas fields will fire automobiles and kitchens in the national capital from next week after Indraprastha Gas today signed agreements to buy the fuel.
RIL and IGL -- the sole retailer of CNG to automobiles and piped gas to industries and households -- signed the Gas Sales and Purchase Agreement (GSPA) for 0.308 million cubic metres per day of gas from KG-D6 fields, IGL Managing Director Rajesh Vedvyas said here.
The KG-D6 gas will replace the costly imported LNG that IGL buys to meet CNG and piped natural gas demand in Delhi.
"The delivered cost of KG-D6 gas will be about Rs 12 per cubic metre as against Rs 13.40 per cubic metre of LNG," he said.
He said the supplies will start in a week and the volume will increase to 0.5 million standard cubic metres a day (mmscmd) by March 2010 and in five years the KG gas requirement would be 2.1 mmscmd.
The delivered price of RIL gas, after including taxes and transportation charges including those paid to GAIL, will be $6.7-6.8 per million British thermal unit as against the liquefied natural gas (LNG) price of $7.25 per mmBtu.
IGL is the first city gas company to sign the GSPA with RIL. It also signed a gas transportation agreement (GTA) with Reliance Gas Transportation Infrastructure.
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