Petronet to supply 1.5 MT LNG to Dabhol Power

New Delhi, Mar 22 (UNI) Petronet LNG would supply 1.5 million tonne liquefied natural gas to Ratnagiri Gas and Power, which owns Dabhol project, until September 2009 at 5.83 dollar per million British thermal unit.

The gas supplies would begin in June after the completion of the gas pipeline from Dahej to Uran in May, sources said.

Petronet has signed agreements with Oman, Qatar and Nigerian companies to source LNG.

The LNG is expected to flow from June once the pipeline between Dahej and Uran is completed. Before that, RGPPL will have to sign the power purchase agreement with Maharashtra State Power Distribution Company, MahaVitaran, for drawing 2,150 MW.

The agreement is expected to be signed this week.

The sources said GAIL (India) Ltd has also assured to provide gas for the Dabhol project while the government had directed it to work faster on constructing necessary pipelines for this purpose.

With the supply of gas the Dabol plant would start producing 1400 MW power by the end of May.

RGPPL, a joint venture between NTPC and GAIL India, has been entrusted with the task of running the Dabhol plant. Due to lack of funding, RGPPL is unable to complete the renovation process now.

UNI