Ratnagiri to get gas at $5.93/mmbtu from Petronet LNG

Mumbai, May 29 | Updated: May 30 2007, 05:30am hrs
Finally, there seems to be some good news for power-starved Maharashtra. Petronet LNG Ltd will supply 1.5 million tonne of gas from July 1 to Ratnagiri Gas & Power Pvt Ltd (RGPPL), for operating two units of 740 mw each. The gas supply will continue till September 2009. Petronets commitment comes in the wake of GAIL (India)s assurance that the Dahej-Uran gas pipeline would be ready for commercial operation by June end.

Petronet will receive gas at Dahej for $4.83 per million British thermal unit (mmbtu) and will supply the same to Ratnagiri Power at $5.93 per mmbtu. We have already made a commitment to supply up to 1.5 million tonne of gas to Ratnagiri Power Ltd, which will help in generating 1,400 mw of power. RGPPL has indicated that it will be able to revive the third unit of 740 mw during December 2007-March 2008, and hence, we have assured to source.6 million tonne of gas also for the same. 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, P Dasgupta, managing director & CEO, Petronet LNG, said.

Dasgupta was speaking to FE on the sidelines of GCC-India investment conference here on Tuesday. He said the gas has already reached Dahej. Now everything depends on the completion of the Dahej-Uran pipeline by GAIL (India), he said.

Petronet LNG has agreed to supply gas up to September 2009 after receiving an indication from RGPPL that the LNG terminal would be fully ready for commercial operation by September. It must be mentioned that the petroleum ministry had indicated at the last meeting of the empowered group of ministers that it would ask Petronet LNG to source and supply .6 million tonne to Ratnagiri Power Ltd so that its requirement of 2.1 million tonne per annum is met. A delegation led by petroleum minister Murli Deora visited several countries on the long-term supply of gas, and the contract is expected to be finalised with Algeria starting 2011. In the intervening period of 18 months, spot procurement of LNG may have to be done for Ratnagiri Power.