BS reported that the Reliance Industries Ltd has asked the government to re allocate the gas supplied by it which state run NTPC has refused to take, pending the outcome of a legal battle with RIL in the Bombay High Court to other customers.
As per report Mr PMS Prasad president & CEO (Petroleum) of RIL in a letter addressed to Union petroleum secretary said that “In view of the persistent stand of NTPC not to sign (a) Gas Sales and Purchase Agreement for its Kawas and Gandhar plants, it is requested that the 2.1 mmscmd of gas allocated to the Kawas and Gandhar plants be reallocated to other customers.”
Gas pricing and customers are decided by the Union petroleum ministry for even private producers. RIL and NTPC are engaged in a legal tangle in the Bombay HC over sale of gas from the Krishna Godavari basin on the eastern coast to the Kawas and Gandhar expansion projects at USD 2.34 per mmBtu.
NTPC was allocated 2.67 mmscmd from the KG-D6 fields, but has refused to sign contracts for that portion allocated to the Kawas and Gandhar units in Gujarat.
Mr Prasad wrote that “Despite RIL having agreed to sign the GSPAs with the caveat that these GSPAs would be without prejudice to the ongoing matter that is sub judice, NTPC continues to maintain that it does not want to discuss the GSPA for the existing Kawas and Gandhar plants even though the ongoing litigation relates to the proposed expansion of Kawas and Gandhar.”
(Sourced from http://www.steelguru.com/news/index/2009/10/13/MTE1ODIw/Reallocate_gas_NTPC_is_refusing_to_take_-_RIL.html)
Monday, October 12, 2009
Reallocate gas NTPC is refusing to take - RIL
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