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Tuesday, Jun 23, 2009
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Business Daily from THE HINDU group of publications Tuesday, Jun 23, 2009 ePaper | Mobile/PDA Version | Audio | Blogs |
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Petroleum Corporate - Corporate Disputes Web Extras - Outlook
Finer details of the pact may be worked out by NTPC and Reliance by month end Supplies for Kawas, Gandhar stations currently under litigation Our Bureau New Delhi, June 22 NTPC Ltd is close to signing a deal with Reliance Industries Ltd (RIL) for gas from the D6 block at $4.2/mBtu at the landfall point. The deal covers all of the public sector power major’s gas stations, except Kawas and Gandhar, supplies to which are currently under litigation. “The final details are being thrashed out. The draft gas supply and purchase agreement (GSPA) has already been dispatched to RIL from our side. Discussions on the finer aspects of the agreement may require one more meeting. We should be able to do it by the end of this month,” a senior NTPC official said. He, however, declined to comment on specifics, including marketing margins and liability issues. According to gas utilisation and allocation policy, an empowered group of ministers (EGoM) had approved allocation of 16.66 mscmd of gas from RIL’s D6 block for the power sector. Of this, NTPC was allocated 2.67 mscmd. While other power companies, including Ratnagiri Gas & Power Pvt Ltd (RGPPL), have already signed a GSPA with RIL, NTPC was the only power utility left to ink the agreement. NTPC, it seems, had been waiting for the outcome of its ongoing case with RIL on gas supplies under an earlier deal for its Kawas and Gandhar expansion projects. Under the disputed deal, RIL was awarded a contract after it emerged as the lowest bidder ($2.34/mbtu) to supply 12 mscmd of gas to NTPC for 17 years. The case is currently being heard by the Bombay High Court.
The EGoM while prioritising the sectors for receiving the initial output of 40 mscmd from D6 had earmarked 14.97 mscmd for fertiliser plants and 16.66 mscmd for power. Currently, RIL is producing 26-28 mscmd of gas. While 11.16 mscmd is being supplied to other power companies, allocation of 2.7 mscmd has been made for RGPPL (Dabhol) to be delivered when the stations are fully operational. NTPC, Reliance Ind case hearing on July 8 Fresh twist to RIL, NTPC gas supply pact RNRL open to NTPC receiving first tranche from KG block More Stories on : Petroleum | Corporate Disputes | Reliance Industries Ltd | NTPC Ltd | Outlook
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