NTPC opposes sale of RIL's KG-D6 gas to Dabhol

After vehemently seeking natural gas from Reliance Industries (RIL), state-run NTPC is now opposed to the fuel being sold to its joint venture Dabhol power plant.

NTPC, which vehemently opposed RIL's plea for not selling its Bay of Bengal field gas to the state-run firm due to the ongoing court case, is now pointing at the same dispute in opposing sale of KG-D6 gas to Ratnagiri Gas and Power (RGPPL).

RGPPL board is split on sourcing gas from RIL, a company official said. "NTPC opposes the move while other promoter GAIL is in favour of it."

The government has allocated 2.7 million cubic meters per day of gas (mmcmd) from RIL's KG-D6 fields to RGPPL for the period till September 2009 and 8.5 mmcmd thereafter, to help the nation's largest gas-fired power plant reduce its reliance on imported fuel.

RGPPL was ready to sign the Gas Sales and Purchase Agreement contract to buy gas at $4.20 per million British thermal unit, 25 per cent cheaper than the cost of imported fuel but NTPC objected to it and wanted the board to decide.

"The board meets on May 8 to consider the GSPA," he said.

NTPC too has been allocated 2.67 mmcmd gas from KG-D6 for its plants but it is not yet signing the GSPA and has sought legal opinion.

It had fought RIL's opposition saying its legal battle with Mukesh Ambani company was for future projects and its current plants were entitled to get gas from the nation's largest gas field.