NTPC to buy Reliance gas at $4.2 per mmBtu
24 September 2009
National Thermal Power Corporation Ltd (NTPC) has signed an agreement with Reliance Industries Ltd (RIL), under which the state-run power utility will buy part of the natural gas allocated to it from the KG D6 fields at the government-set price of $4.2 per million metric British thermal unit (mmBtu).
NTPC will buy 0.61 million standard cubic metres (mmscmd) of gas a day from Reliance Industries - nearly a fourth of the gas allocated to it by the government, commencing this week.
The government had allocated NTPC 2.67 mmscmd of gas from the Reliance-operated KG D6 fields.
NTPC will use the gas for its plant in Anta in Rajasthan and the gas will start flowing in the next 7-10 days, industry sources said.
NTPC also signed a separate gas transportation agreement with Reliance Gas Transportation Infrastructure Ltd to get the gas delivered at its plant site at Anta.
The quantities and the price under the gas sale and purchase agreements (GSPAs) are valid for five years and these have been approved by the government, RIL said in a statement.
The NTPC scrip gained 1.97 per cent and rose to Rs212.40 on the Bombay Stock Exchange (BSE) after the company singed the gas procurement pact with Reliance Industries.
While trade volume remained at the daily average of over a million shares, the NTPC scrip hit a high of Rs213.80 and a low of Rs206.20 by late afternoon. The stock had hit a 52-week high of Rs233 on 15 June 2009 and a 52-week low of Rs113 on 27 October 2008.