While ADAG has taken RIL to court seeking gas from KG-D6 at rates decided in a private agreement that split Dhirubhai Ambani empire between the two brothers, Power Ministry has identified Reliance Energy Ltd's Samalkot plant in Andhra Pradesh as one of the recipients of KG-D6 gas.
The 220-MW power plant has been allocated 0.19 million cubic meters per day of KG-D6 gas at government approved rates of $4.20 per million British thermal unit plus taxes and transportation, a government official said.
ADAG is seeking gas from RIL at $2.34 per mmBtu. Samalkot is one of the eight power plants identified in Andhra Pradesh to receive KG-D6 gas from next month, he said.
Though RIL was promised marketing freedom when it won the KG-D6 block in Bay of Bengal in international tender, it has been stripped of all its rights and is being forced to sell the fuel from its discoveries it made in the block to customers identified by the government.
"RIL has already signed gas sales agreements with six power plants in Andhra Pradesh and I believe they would be doing the same with Samalkot next week," the official said. Company officials could not be reached for comments.
Reliance is currently producing about nine mmcmd gas from Dhirubhai-1 and 3 fields in the deep sea Krishna Godavari basin block KG-DWN-98/3 or KG-D6 and output is expected to touch 20 mmcmd by month end.
The official said RIL had signed Gas Sales and Purchase Agreements to sell 9.2 mmcmd gas to four independent power producers - 664-MW Gautami Plant, 204-MW Spectrun, 370-MW Vemagiri and 445-MW Konasemma power plant - and GVK Power's two electricity generating units in Andhra Pradesh.
These power plants and the quantities to them have been decided by the Power Ministry. The firm had previously signed GSPAs with 12 fertiliser firms committing the first 15.3 mmcmd of KG-D6 gas.
But with production slated to cross this threshold in next few days, it desperately needed to tie-up sales with power generators, the second priority customers set by the government.
An Empowered Group of Ministers (EGoM) had on April 9 approved sale of 18 mmcmd KG-D6 gas to power plants. The official said RIL will sign GSPAs for sale of remaining of the 18 mmcmd KG-D6 gas allocated to power sector, in next couple of weeks.
Ratnagiri Gas and Power Pvt Ltd, the owner of the beleaguered Dabhol power plant, would be one of the customers of KG-D6 gas but it has so far not signed the GSPA as it is unable to receive the fuel.
