RIL inks gas supply agreements with power firms

Reliance Industries has inked deals to supply gas from its eastern offshore KG-D6 fields to most power sector consumers, including Essar Power and an Anil Ambani Group firm.      

However, it is yet to sign the Gas Supply and Purchase Agreement (GPSA) with state-run NTPC Ltd and Ratnagiri Gas and Power, the owner of the Dabhol power plant.      

NTPC is to get 2.67 million cubic metres per day of gas from KG-D6 while Dabhol has been allocated 2.7 mmcmd.     

"Ratnagiri Gas and Power cannot immediately take KG-D6 gas and so it has not signed the GSPA, which has provisions of take-or-pay," a Government official said. "In the case of NTPC, RIL has sent a draft GSPA and the agreement is likely to be signed soon."      

The power sector had been allocated 18 mmcmd gas out of the initial 40 mmcmd volumes from KG-D6. Gas of 6.22 mmcmd would go to eight power plants in Andhra Pradesh, the landfall point of the gas from the Bay of Bengal fields.      

Essar's 300 MW power plant in Gujarat will get 1.08 mmcmd while ADAG's 220-MW Samalkot plant in Andhra Pradesh will get 0.19 mmcmd.      

Gas will be sold at government-approved rates of USD 4.20 per million British thermal unit plus taxes and transportation, the official said.      

Company officials could not be reached for comments.