State-run NTPC has signed the contract with RIL for supply of 0.61 mmscmd gas from its KG D-6 field at $4.2 per mmbtu price. NTPC has been allocated a total of 2.67 mmscmd of gas from RIL’s prolific KG Basin block. NTPC has signed the contract for gas supply to its Anta CCGT power plant. The delivered cost of gas is expected to be around $6.5 per mmbtu. So far, NTPC has been using RLNG priced at $9 per mmbtu.
Anta power plant, with total generation capacity of 419 MW, requires about 19.2 trillion btu of energy to operate at 80% plant-load factor (PLF), with station heat rate of 6800 btu/kwH. Supply of 0.61 mmscmd of natural gas from RIL’s KG D-6 field can generate 7.95 trillion btu of energy assuming the calorific value of gas at 9,000 kcal per cubic metre. Therefore, the gas supplied from RIL would be sufficient only to fulfill about 41% of total energy requirement for the plant. In other words, 0.61 mmscmd gas would be sufficient to feed 174 MW power generation capacity, out of 419 MW, to run at 80% PLF.
Currently, NTPC, which buys RLNG at $9 per mmbtu, incurs a sum of $71.8 million or Rs. 345 crore annually for purchasing 7.95 trillion btu. With KG D-6 gas available at delivered price of $6.5 per mmbtu, the total cost would slip down substantially to $51.87 million or Rs. 249 crore.
This will save around Rs. 96 crore for the state-run NTPC on account of cheaper gas buy from RIL. Notably, the contracted quantity of 0.61 mmscmd is less than one-fourth of the total allocation of 2.67 mmscmd to power major NTPC from RIL operated KG D-6. if the entire allocation is contracted by NTPC, it can save huge public money for NTPC which is being wasted by buying costly fuels.
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