HOME   
   NEWS   
   BUSINESS   
   CRICKET   
   SPORTS   
   MOVIES   
   NET GUIDE   
   SHOPPING   
   BLOGS  
   ASTROLOGY  
   MATCHMAKER  


Search:



The Web

Rediff








Business
Portfolio Tracker
Business News
Specials
Columns
Market Report
Mutual Funds
Interviews
Tutorials
Message Board
Stock Talk



Home > Business > PTI > Report

Reliance may sell KG gas to Dabhol

February 05, 2003 15:30 IST

Reliance Industries may sell one-fourth of the 40 million standard cubic metres per day of natural gas production likely from its gigantic Krishna Godavari field off the Andhra coast to Dabhol Power project in Maharashtra after its revival.

"If gas is available at price lower than LNG, Dabhol will opt for it. After its revival, Dabhol will certainly be on Reliance scanner," informed sources said in New Delhi.

The $2.9-billion Dabhol project, currently shut following a payment dispute with its sole customer Maharashtra State Electricity Board, will replace naphtha with gas as feed stock once the 1,444 mw phase-II is complete.

Incidentally, RIL is one of the about half a dozen suitors for taking over the 2,184 mw state-of-the-art project from bankrupt US energy trader Enron Corp.

RIL already has plans to pipe half of Krishna Godavari gas to Maharasthra where it is negotiating with MSEB for supply of 2 mmscmd for its 912 mw power plant. Besides, it plans to supply gas to couple of power plants of BSES in the state including the proposed 500 mw project at Saphale.

Sources said the company has submitted the commerciality report to the Government's upstream nodal agency Directorate General of Hydrocarbons  for approval.

"The consortium of RIL and Niko Resources of Canada expects pleat production of 40 mmscmd for nine years. It says the production would begin within 30 months from the date of Government approval," sources said adding development plan for the field would be submitted after the quantum of gas production DGH approves.

Sources said RIL plans to sell 20 mmscmd of KG gas in ndhra Pradesh and adjoining states and was exploring gas ales to fertiliser and cement companies like Nagarjuna ertilisers & Chemicals, Godawari Fertiliser & Chemicals in Ainada in Andhra Pradesh, Chambal Fertiliser and Coromdanal Fertiliser in Vizag.

Besides, the 360 mw Kakinada power project of BSES would switch to KG gas. RIL was also in talks with AP Power Generation Corp for supplying gas to its under-utilised power plants and future expansions.

© Copyright 2003 PTI. All rights reserved. Republication or redistribution of PTI content, including by framing or similar means, is expressly prohibited without the prior written consent.



Article Tools

Email this Article

Printer-Friendly Format

Letter to the Editor



Related Stories


The Enron Saga

Institutional selling dents RIL

Institutional support lifts RIL

RIL Q3 show has investors euphoric



People Who Read This Also Read


Bottled water issue to be probed

BSNL may file new tariff plan

Govt to talk to GE, Bechtel on DPC







HOME   
   NEWS   
   BUSINESS   
   CRICKET   
   SPORTS   
   MOVIES   
   NET GUIDE   
   SHOPPING   
   BLOGS  
   ASTROLOGY  
   MATCHMAKER  
© 2003 rediff.com India Limited. All Rights Reserved.