The Hindu Business Line : Panna-Mukta-Tapti — NTPC refuses to pay revised prices

THE state-owned National Thermal Power Corporation (NTPC), the largest consumer of gas along the GAIL (India) Ltd's Hazira-Vijapur-Jagdishpur (HVJ) pipeline, has refused to shell out higher gas prices from the Panna-Mukta-Tapti (PMT) of the British Gas-led joint venture consortium.

"We have decided not to pay the jacked up rates. We have conveyed our decision to the parties concerned and the Ministry is taking up the issue on our behalf," a senior NTPC official said.

The BG-led consortium had, from April 1, hiked PMT gas prices for customers, which, besides NTPC, also includes several fertiliser plants.

According to industry sources, GAIL is scouting for other consumers for the gas, including power plants, in the eventuality that NTPC does not fall in line with the revised prices over the next couple of months.

NTPC's argument for not paying the jacked up rates is that its gas-based power stations were accorded fuel by the Gas Linkages Committee in 1990 based on availability of gas from ONGC production, much before the PMT operations started.

"Gas-linkages accorded to NTPC stations are solely on the basis of availability of gas from ONGC fields and are not contingent upon the availability of gas from the joint venture gas fields of PMT," an NTPC official said.

Following the April 1 price hike, the HVJ gas is now the highest priced in the country at $5.15 per mtu (million thermal unit).

This price is even higher than the imported R-LNG price from Dahej terminal by about 15 cents.

While NTPC has refused to play ball, major fertiliser companies have agreed to shell out higher gas price from the PMT fields fearing a cut in supplies.

According to the Power Ministry officials, NTPC's existing gas-based stations are already suffering due to inadequate supplies of only 10.3 mmscmd, as against a sustained requirement of 16 mcmd (million cubic metres per day).

"Any reduction is gas supply will only aggravate the situation and generation at these stations would be disrupted. We are taking up the issue with the Ministry of Petroleum," an official said.

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
Power exchange: Task force on global tour to select ideal model

Panna-Mukta-Tapti — NTPC refuses to pay revised prices

How much does export promotion cost?

S&P hikes offer price for Crisil to Rs 775

Liquidity may decide market direction

PAN may be mandatory for large single-day cash drawals — 'Withdrawal tax' likely to be dropped