RIL may ink gas sale pact with Ratnagiri Gas: report

Reliance Industries Ltd. (RIL) may sign an agreement this week to sell gas to Ratnagiri Gas & Power Pvt. Ltd. (formerly Dabhol Power Company). According to reports, Ratnagiri board is scheduled to meet on May 8 to consider the accord to buy 2.5mn cubic meters a day of gas from RIL. The agreement would benefit RGPPL as its contract with Petronet LNG is slated to expire by September. The power plant requires about 5.6 mmscmd by October to double its generation capacity to 1,200 mw. It will need gas of 8.4 mmscmd to run the plant at full capacity of 2,150 mw. According to an official of the Maharashtra State Electricity Distribution Company, the agreement is likely to be signed at the government approved well-head price of US$4.2 per million metric British thermal unit (mmBtu). RGPPL will have to pay an additional US$1 per unit for transportation.