New Delhi: An agreement has been reached between NTPC and GAIL over the price of gas supplies from PMT. GAIL has started supply of gas from Panna-Mukta-Tapti (PMT) field to NTPC from today at the rate of 2.1 MMSCMD.

Further, efforts are being made to supply an additional 1.9 MMSCMD of gas, thereby enhancing the supplies by up to four MMSCMD. GAIL has made provisions for extra gas in view of the onset of summer and to help ease the overall power situation.

NTPC has agreed to take the additional 1.9 MMSCMD at a market related price of Rs4,160 per SCM plus other charges. For the 2.1 MMSCMD, NTPC has confirmed that it will abide by the final outcome of the ongoing discussions between ministry of power and ministry of petroleum and natural gas.

It may be recalled that 6 MMSCMD of PMT gas was to have been supplied by GAIL to the existing power and fertiliser sectors at Rs4,160 per SCM plus other charges with effect from April 1, 2005. While this price was accepted by consumers such as NFL, Chambal Fertilizers, Tata Fertilizers, Indo Gulf, IFFCO, Oswal Fertilizers, Pragati Power and Delhi Vidyut Board, NTPC was reluctant to accept the price, resulting in lower offtake of PMT gas by GAIL.

With NTPC now having accepted the market related price for 1.9 MMSCMD, the issue of price of the remaining 2.1 MMSCMD is also expected to be resolved very shortly. Meanwhile, GAIL's offtake of PMT gas has now increased to about 5 MMSCMD and is to reach 6 MMSCMD shortly.