The agreement is for supply of gas for 15 years, a company press release said here. "This is the first agreement to be signed by ONGC at market price in Tripura," it said.
NEEPCO plans to produce 104 MW power by end-2010 from this combined cycle power plant. A Gas Supply Agreement (GSA), formalising this, was concluded here today. The Term Sheet, which was signed earlier this year on March 25, has now been regularised with this agreement, the release said.
The GSA was signed by ONGC Director In-charge of Marketing N K Mitra and NEEPCO Director (Finance) M R Ghosh. The first drawl of gas is slated by September 25, 2010.
ONGC will transport gas from its various fields in Tripura including Sonamura, Tichna and Sundalbari and deliver at the fence of NEEPCO's Monarchak project.
Mitra said the long association between ONGC and NEEPCO in North-East will be reinforced with this agreement and it will also help in development of the power-starved region.
