The key highlights are:
— The duration of contract under the GSPA is five years
— The gas price in GSPA is as per the formula approved by the government
— Gas to the customers would be transported through the East-West pipeline of Reliance Gas Transportation Infrastructure Limited (RGTIL) and through pipelines of GAIL (India) Limited and Gujarat State Petroleum Corporation Limited.
— The power companies also signed gas transportation agreement (GTA) with RGTIL.
The list of power companies with whom GSPA were signed is annexed. RIL expects to sign GSPA with other power companies shortly, which is expected to increase the contracted quantity of gas for the power sector to 18 mmscmd.
PMS Prasad, president and chief executive officer, petroleum, RIL, said, “We are happy to have entered into agreements with customers in the power sector, and look forward to entering into agreements with other customers in this sector soon. The expected supply of 18 mmscmd gas to the power sector would largely eliminate the deficit in gas supply being currently faced by these units. The supply of 18 mmscmd natural gas to these units would result in generation of approximately 4000 MW of power, which would be a welcome relief in many parts of the country. We look forward to having a long-lasting and mutually beneficial relationship with the power companies.”
