NTPC seeks KG D6 gas beyond 2014

NTPC has asked the Government to extend gas supplies from the D6 block in the Krishna Godavari (KG) basin beyond 2014.

In 2009, an empowered group of Ministers (eGoM) allocated 4.46 million standard cubic metres per day (mmscmd) to the public sector power sector.

Out of the total gas allocated, 2.30 mmscmd has been contracted with Reliance Industries Ltd (RIL), the operator of D6 gas fields. The present gas sale agreements are valid till March, as the allocation of KG D6 gas was made for five years.

“It is understood that the production from KG D6 fields is likely to continue beyond March 2014. From a fuel security point of view, continuation of supply of KG D6 gas in future is very crucial for NTPC gas stations,” NTPC wrote to the Power Ministry recently.

NTPC uses the KG D6 gas at its power stations in Anta, Auraiya, Dadri and Faridabad.

In addition, NTPC has informed the Government that RIL and its partners are unilaterally changing the terms and conditions of the gas-sale-purchage-agreement (GSPA) in their favour. For example, in the new draft, GSPA has proposed that the seller will have no liability and the buyer will have no right to sue the seller for any delay or shortfall or interruption of gas.

NTPC has said that the supplies under GSPA may get restricted under two circumstances — lack of availability of gas, in line with Government directives. However, RIL is not agreeing to modification of GSPA.

The public sector power producer has sought the nodal Ministry’s intervention for resolution of differences over GSPA.

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