NTPC may not get KG gas at less than $4.20
State-run NTPC would not be "allowed" to buy KG-D6 gas at less than $4.20 per million British thermal unit (mmBtu), the union government told the Bombay High Court today.
The High Court is hearing a dispute between Mukesh Ambani-led Reliance Industries (RIL) and Anil Ambani's Reliance Natural Resources (RNRL) over a gas sale agreement, in which the government has intervened.
Additional Solicitor General Mohan Parasaran told the court that "NTPC will not be allowed to buy gas at less than $4.2 per mmBtu".
He also said that the gas should be sold as per the marketing priorities as spelt out in the gas utilisation policy of the government.
NTPC has filed a separate suit against RIL, seeking that RIL execute the contract of gas supply.
RIL has denied that the contract with NTPC was formalised.
As per the NTPC-RIL contract, NTPC is due to get the gas from KG basin at $2.34 mmBtu.
As per RNRL, it is also entitled to get the gas from RIL at the same price as NTPC.
The hearing in RIL-RNRL case will continue.