Petronet to supply gas to RGPPL  

There is a good news for power-starved Maharashtra. From July 1 onwards, Petronet LNG Ltd (PLL) will start supplying 1.5 million tonne of gas to enable Ratnagiri Gas & Power Pvt Ltd (RGPPL), previously known as the Dabhol project, operate its two units of 740 mw each. PLL?s commitment comes in the wake of GAIL?s assurance that the Dahej-Uran gas pipeline would be ready for commercial operation by end of June.

PLL has committed to supply 1.5 million tonne of gas till September 2009. PLL will receive gas at Dahej at $4.83 per million British thermal unit (MMBTU) and thereafter PLL will supply it to RGPPL at $5.93 per MMBTU including sales tax, at the project site.

?We have already made a commitment to RGPPL to supply 1.5 million tonne till September 2009. This quantity will be able to generate 1,400 mw of power. RGPPL has indicated that it will be able to revive its third 740 mw unit during December 2007 and March 2008. We have assured to source 0.6 million tonne of gas for the same unit, the price of which will be determined later. RGPPL will be in a position to generate 2,100 mw on 2.1 million tonne of gas,? informed P Dasgupta, MD,CEO, PLL.

Dasgupta was speaking to FE at the sidelines of GCC-India Investment Conference in Mumbai on Tuesday. He said that the gas had already reached Dahej. Everything now depended on the completion of the Dahej-Uran gas pipeline by GAIL, he added.

Dasgupta said that PLL had agreed to supply gas till September 2009 when RGPPL?s LNG terminal would be ready for commercial operation. The Union petroleum ministry had indicated at the last meeting of the empowered group of ministers (EGoM) that it would ask PLL to source and supply 0.6 million tonne of gas to RGPPL so that its yearly requirement of 2.1 million tonne would be met. Regarding the long term supply of gas , a delegation led by Union petroleum minister Murli Deora, visited several countries and a contract with Algeria is to be finalised.

Source: The Financial Express, Mumbai, 30 May 2007
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