Gas supply to NTPC from KG basin to start soon

Last Updated: Tuesday, October 27, 2009 - 18:05

New Delhi: More than a month after it signed the contract for buying gas from Reliance Industries, state power utility NTPC Ltd is likely to finally begin drawing the fuel from KG basin field from this week.

"All requirements including providing bank guarantee have
been met by NTPC and gas flow can start as early as tomorrow,"
an official said.

NTPC, which was allocated 2.67 million standard cubic
meters per day of gas by the government from RIL`s eastern
offshore KG D-6 fields, had on September 23 signed Gas Sales
and Purchase Agreements (GSPA) for less than one-fourth of the
earmarked volumes.

The company will use 0.13 mmscmd of D6 gas at its
Faridabad power plant in Haryana, 0.03 mmscmd at Anta in
Rajasthan and 0.45 mmscmd at its Dadri unit in Uttar Pradesh.

The official said NTPC does not want to use RIL gas at
its Kawas and Gandhar plants in Gujarat and has proposed
swapping the allocations for these with the gas from
Panna/Mukta and Tapti fields that goes to its plants in
northern India.

The proposal entails partially diverting subsidised/PMT
gas of NTPC`s power plants in the northern part of the country
to Kawas and Gandhar. The gas allocated to Kawas and Gandhar
will then be diverted to NTPC`s plants in the north.

The official said while Kawas was originally allocated
1.75 mmscmd and Gandhar 0.30 mmscmd, for the two plants to
operate at a minimum 70 per cent of the capacity (Plant
Load Factor), a combined 2.71 mmscmd gas would be needed.

So, 2.71 mmscmd of subsidised/PMT gas would be diverted
from NTPC`s plants in northern India to Kawas and Gandhar. An
equivalent quantity would be moved from D6 to these plants
in North India.

"Essentially, this would mean that gas allocation would
have to be increased, which would be done," he said.

RIL had signed GSPAs for supplying 0.61 mmscmd of gas to
the state-run firm`s Anta, Dadri and Faridabad power plants.

However, due to constraints in state-run gas utility GAIL
India Ltd`s pipeline to transport KG-D6 gas, all of the 0.61
mmscmd would be consumed at Anta plant for the time being.

The state-run firm is unwilling to use D6 gas at Kawas
and Gandhar plants as it is seeking fuel for expansion
projects at those sites from the Mukesh Ambani firm at USD
2.34 per mmBtu rates committed in the 2004 tender.

RIL is currently producing about 42 mmscmd of gas from KG
D-6. Of this 14.45 mmscmd is being supplied to fertiliser
plants and 22.57 mmscmd to power plants.

Bureau Report



First Published: Tuesday, October 27, 2009 - 18:05

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