NTPC opposes sale of RIL's KG-D6 gas to Dabhol power plant
07 May 2009
The National Thermal Power Corporation (NTPC), which has sought to buy natural gas from Reliance Industries' KG-D6 fields in the eastern offshore for itself, has now come out strongly against sale of the gas to its joint venture Dabhol power plant.
State-run NTPC, which had earlier been denied access to KG-D6 gas due to RIL's ongoing court battle with Anil Ambani group firm Reliance Power, is now using RIL's plea to oppose sale of KG-D6 gas to Ratnagiri Gas and Power Pvt Ltd.
The board of the Dabhol power company is now split over sourcing gas for the mega power plant, part of which will come from imports.
Ratnagiri Gas and Power Pvt Ltd has been allocated 2.7 million cubic meters per day of gas from the KG-D6 fields for a period till September 2009 and another 8.5 mmcmd thereafter.
NTPC, opposes the move while the other promoter GAIL is in favour of it. The board of RGPPL is meeting tomorrow to consider the gas sale and purchase agreement.
RGPPL has been offered gas at the rate of $4.20 per million British thermal units, 25 per cent cheaper than the cost of imported fuel.