New Delhi, June 5 : The Oil and Natural Gas Corporation Ltd. (ONGC) will supply 0.5 million cubic metres per day of gas for a period of 15 years to the gas-based power station of North Eastern Electric Power Corporation Ltd. (NEEPCO) coming up at Monarchak at Tripura.
The agreement assumes significance as this is the first agreement to be signed by ONGC at market price in Tripura. NEEPCO plans to produce 104 MW of power by end 2010 from this combined cycle power plant.
A Gas Supply Agreement (GSA), formalizing this, was concluded in New Delhi between the two parties on 5th June 2008. The Term Sheet, which was signed earlier this year on 25th March 2008, has now been regularised with this agreement.
The Gas Supply Agreement was signed by ONGC's Director in-charge of Marketing, N.K. Mitra (left), and Neepco's Director (Finance) M.R. Ghosh.
Under this agreement, ONGC will commence supply of 0.5 million cubic metres per day of gas, for 15 years, from the date of first drawal of gas; the first drawal is slated by 25th September 2010, within 30 months from the date of signing of Term Sheet.
ONGC shall be transporting gas from its various new fields in Tripura including Sonamura, Tichna and Sundalbari and deliver at the fence of Neepco's Monarchak project.
Speaking after signing the agreement, ONGC's Director Mr. N K Mitra said the long association between ONGC and NEEPCO in North-East will be reinforced with this agreement and this will also help in development of power-starved region.
Expressing happiness over this Gas Supply Agreement, NEEPCO's Director Mr. M R Ghosh said that NEEPCO is keen to participate in ONGC's Palatana Power venture there and may even chip in with equity, if given an opportunity.