Reliance Industries Ltd (RIL) today said it had signed a natural gas sales pact with the country’s largest power producer, NTPC Ltd, to supply 0.61 million cubic metres a day (mmscmd) of gas.
“RIL executed Gas Sale and Purchase Agreements (GSPAs) with NTPC for supply of gas from the KG-D6 block to the power plants of NTPC in Anta, Dadri and Faridabad,” a company spokesperson said. Supply of gas to NTPC is expected to commence within a week, he added. “The volume of gas under these GSPAs is 0.61 mmscmd, which will be initially supplied only to the power plant in Anta in Uttar Pradesh, due to capacity constraint in GAIL's pipeline,” he said. The quantities and price of $4.2 per mBtu under the GSPAs signed for five years are as approved by the government.
In April, the government had allocated 2.67 mmscmd of D6 gas at $4.2 per mBtu for NTPC’s plants in Faridabad, Dadri, Anta, Kawas and Gandhar. However, NTPC had conveyed to RIL that it will not discuss the GSPAs for the Kawas and Gandhar plants in Gujarat, as it is involved in litigation with RIL for gas supplies to the proposed expansion projects of the two stations.