Gujarat-based Torrent Power has protested Petroleum Ministry's decision to cancel almost all contracts for sale of gas from Panna/Mukta and Tapti fields and divert it to GAIL India for re-sale at higher price.Torrent currently does not receive PMT gas but it is counting on supplies from the three fields to fire its 1,130 MW plant in Surat that is expected to be fully commissioned by the end of 2008.On June 15, 2006, Torrent had signed a 12-year gas supply contract with Oil and Natural Gas Corp (ONGC) for sourcing 0.9 million standard cubic meters per day of PMT gas at $4.75 per million British thermal unit, the company wrote to Petroleum Secretary on December 21, 2007."ONGC has earned its reputation of being one of the prestigious Navratna PSUs of the nation. It would be highly important for this Fortune 500 to honour its contractual commitment," Torrent wrote.Petroleum Ministry had last month decided to divert PMT gas to public sector firm GAIL, and bar deliveries to state-owned power utility Rajasthan Rajya Vidyut Utpadan Nigam (RRVUNL), for sale at higher price of $5.7 per mBtu."If the decision of government is that GAIL shall be the government nominee for sale of gas from PMT fields, ONGC's contract could be assigned to GAIL on back to back basis," Torrent said.ONGC had in 2005-06 signed three 12-year gas supply contracts with GSPC (1.3 mmscmd), RRVNL (1.5 mmscmd) and Torrent (0.9 mmscmd) from its 40% share of PMT gas.Torrent reminded that both RRVUNL and it were generation units in the priority power sector and were part of the same bidding process conducted by ONGC.
