Ratnagiri Gas and Power will pay $4.2 million metric British thermal unit (mmBtu) for buying gas from RIL and another $1 per unit for transportation.
The development will help the utility formerly Dabhol power project, to attain full pumping capacity by March 2010 and could augur well for Maharashtra’s power consumers who have been inundated by load-shedding.
The gas supply would help ease scarcity of fuel to Ratnagiri Gas and Power. Ratnagiri Gas and Power is estimated to decrease the daily deficit in the state from its peak-demand of 4,500 megawatt (MW) to around 2,500 MW after attaining full capacity in 2010, said AK Ahuja, managing director of Ratnagiri Gas and Power.
The company has intended to replace the gas it takes from Petronet LNG by RIL gas. It would help Ratnagiri Gas and Power, purchases 5 mmscmd has from Petronet LNG, to save around INR1 per unit.
We have signed a gas agreement with RIL on Thursday, Ahuja. He said: We hope the Ratnagiri power plant will achieve its full capacity of 1,900 MW in March next year. The plant is running with a 950 MW capacity.
