Reliance Industries has bagged the order for the
supply of gas to NTPC's Kawas and Gandhar projects in Gujarat. Reliance would be
supplying 13 mscmd of gas (equivalent to 3.25 million tpa of LNG) to the two
power projects with aggregate capacity 2,600 MW, for a period of 17 years.
The following are highlights of the contract:
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The landed cost
of gas (including transportation, taxes and duties) would be $2.97 per
million btu
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The gas prices
has a fixed component of 85 per cent, while 15 per cent is indexed to
inflation
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Power generation
costs would be Rs.2 per unit (kwh) for the first year of operation
-
Reliance would
monetise 2.6 trillion cubic feet of gas from its KG basin to meet NTPC's
requirement
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Petronas of
Malaysia quoted $3.45 per million btu (only LNG)
-
Petronet LNG
quoted $0.65 per million btu, only for regassification facilities
NTPC is already in the market to source gas for
its proposed 2,300 MW gas-based power project at Kayamkulam in Kerala. Bids are
likely to be finalised by March 2005.
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