NTPC still hasnآ’t signed gas agreement with Reliance

Vol 9, PW 1 (20 Apr 05) News in Brief

Dont believe rumours that Reliance and NTPC have signed a formal contract for the supply of 3m t/y gas to the Kawas and Gandhar power plants in Gujarat.

PETROWATCH learns full agreement is still some time away even though both sides began preparatory work from 16th August 2004, when the conditions precedent began. NTPC wants Reliance to begin supplying gas as early as possible so that the new power generating capacity can be commissioned by March 2007.

But Reliance is unwilling to do this and has clearly told NTPC that the earliest date for gas supply will only be in the middle of 2008. NTPC wants commissioning to be in the 10th five year plan, we are told.

This way they can claim to have added so much more generating capacity during this period. The 10th five-year plan ends in March 2007.

Reliance has told NTPC it is not in a position to supply gas at this time.