Reliance Industries signs GSPA with Power Companies

Reliance Industries Limited (RIL) has signed Gas Sales and Purchase Agreement (GSPA) with the customers in power sector for supply of natural gas to be produced from the KG-D6 block. The GSPAs were signed with 9 customers in the power sector for supply of approximately 11.0 million standard cubic meters (mmscmd) natural gas at 11 different power generation facilities.

The key highlights are:

• The duration of contract under the GSPA is 5 years.
• The gas price in GSPA is as per the formula approved by the Government.
• Gas to the customers would be transported through the East-West Pipeline of Reliance Gas Transportation Infrastructure Limited (RGTIL) and through pipelines of GAIL and GSPL.
• The power companies also signed Gas Transportation Agreement (GTA) with RGTIL.

The list of power companies with whom GSPA were signed is Annexed. RIL expects to sign GSPA with other power companies shortly, which is expected to increase the contracted quantity of gas for the power sector to 18 mmscmd.

Speaking on the occasion, Mr. PMS Prasad, President & CEO, Petroleum, RIL, said, “We are happy to have entered into agreements with customers in the power sector, and look forward to entering into agreements with other customers in this sector soon. The expected supply of 18 mmscmd gas to the power sector would largely eliminate the deficit in gas supply being currently faced by these units. The supply of 18 mmscmd natural gas to these units would result in generation of approximately 4000 MW of power, which would be a welcome relief in many parts of the country. We look forward to having a long-lasting and mutually beneficial relationship with the power companies.”

Reliance Industries Limited
Reliance Industries Limited (RIL) is India's largest private sector company on all major financial parameters with a turnover of Rs. 1,50,771 crore (US$ 29.7 billion), cash profit of Rs. 21,566 crore (US$ 4.3 billion), and net profit (excluding exceptional income) of Rs. 15,607 crore (US$ 3.1 billion) as of March 31, 2009.

RIL is the first private sector company from India to feature in the Fortune Global 500 list of 'World's Largest Corporations' and ranks 103rd amongst the world's Top 200 companies in terms of profits. RIL is amongst the 30 fastest climbers ranked by Fortune. RIL features in the Forbes Global list of the world's 400 best big companies and in the FT Global 500 list of the world's largest companies. RIL ranks amongst the 'Worlds 25 Most Innovative Companies' as per a list compiled by the US financial publication-Business Week in collaboration with the Boston Consulting Group.