NTPC gets 1.2m cm/d D6 gas

Vol 13, PW 18 (25 Feb 10) News in Brief

NTPC signed a contract with Reliance for 1.2m cm/d D6 gas on February 16, but is waiting for GAIL to free up capacity on the HBJ before signing up for another 2.05m cm/d that it is entitled to.

NTPC is already receiving 610,000 cm/d D6 gas at its Anta power station in Rajasthan but was allocated a total 3.85m cm/d by the government last November. These fresh supplies of 1.2m cm/d bought at the ex-Gadimoga landfall price of $4.2/mmbtu plus taxes will be supplied to NTPC’s power stations at Auraiya, Dadri and Faridabad, hopefully easing the chronic power shortages faced by north India.

Reliance values NTPC as an important customer. “NTPC draws a consistent quantity of gas because it has so many power stations,â€‌ we hear.

“If one power station is closed it can divert gas to another.â€‌ NTPC insists that none of the D6 gas will be used at it Kawas or Gandhar power stations - at the centre of a bitter legal battle between the two companies over price.