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:

• The landed cost of gas (including transportation, taxes and duties) would be $2.97 per million btu

• The gas prices has a fixed component of 85 per cent, while 15 per cent is indexed to inflation

• 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

• 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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