October 15 for D6 gas to Anta

Vol 13, PW 9 (08 Oct 09) News in Brief

It could be another week before D6 gas starts flowing to the NTPC-owned 418-MW Anta power station in Rajasthan in line with a GSPA signed on September 23 for 610,000 cm/d.

At the time of signing, Reliance said supplies were “expectedâ€‌ within a week from that date but PETROWATCH learns they may not actually start till October 15, as NTPC needs to complete some paperwork. “NTPC needs to open a LC (Letter of credit),â€‌ says a gas sector source, “and tell Reliance about the billing address before it receives gas.

â€‌ He adds the delay is also because NTPC insisted on going over every comma and period on every page in the contract several times. “If they are so distrustful,â€‌ wonders our source, “why did they ask for D6 gasâ€‌ NTPC is separately fighting Reliance in court over a LoI for D6 gas to its Kawas and Gandhar power stations, issued in 2004.

Anta will receive D6 gas priced $4.2/mmbtu, plus transportation charges, taxes and marketing margins.