NEW DELHI: Reliance Industries (RIL) today said it has issued notice to suspend gas supply to Reliance Infra for "default" payment, within days of Anil Dhirubhai Ambani Group (ADAG) entity saying it would not pay "illegal" marketing margins to Mukesh-led firm."
The notice has been issued due to default committed by Reliance Infrastructure in payment of the amounts due to RIL under the invoice for gas supply during the first fortnight of September 2009," an RIL spokesperson said today. Reliance Anil Dhirubhai Ambani Group, has replied to the notice saying: - The notice is misconceieved and malafide - RIL will be solely responsible for any loss to reliance infrastructure for non supply of gas - Reliance infra continues to make payment of lawful sales consideration at $4.2/mmbtu - Charges under marketing margins are 'illegal' and contrary to provisions of the production sharing contract Reliance Infra has been getting the gas from RIL for its power plant in Andhra Pradesh for last five months at a price of $4.2 per mmBtu and marketing margin of 0.13 per mmBtu. The Anil Ambani group, fighting a legal battle for securing 28 mmscmd gas for Reliance Natural Resources (RNRL) from RIL at a price of $2.34 per mmBtu under a family settlement, had last week questioned the marketing margin and had informed RIL that it would not pay the same. "On September 22, 2009, RIL has issued a notice to Reliance Infra for suspension of supply of gas to its power plant in East Godavari, Andhra Pradesh...The notice has been issued in accordance with the terms of Gas Sale and Purchase Agreement (GSPA)," the RIL spokesperson added. Earlier in its letter, Reliance Infra had told RIL that their gas supply agreement was not a result of any marketing undertaken by RIL or any agency and "since there has been a complete absence of any marketing, the charge in respect of marketing margin is clearly unwarranted." Meanwhile, state-run NTPC, India's biggest power producer, today signed a pact with Mukesh Ambani-led Reliance Industries to buy a part of natural gas allocated to it from K-G D6 fields at a rate of $4.2 per mmBtu. NTPC will buy 0.61 million metric standard cubic meters of gas a day (mmscmd) for its plant in Anta in Rajasthan, an industry official said. The gas will start flowing in the next 7-10 days, the official added. The volumes are less than one-fourth of the 2.67 mmscmd gas the Government had allocated to NTPC. The state-run power utility signed a Gas Sales and Purchase Agreement (GSPA) with RIL and a separate Gas Transportation Agreement with Reliance Gas Transportation Infrastructure. --~--~---------~--~----~------------~-------~--~----~ You received this message because you are subscribed to the Google Groups ""GLOBAL SPECULATORS"" group. To post to this group, send email to [email protected] To unsubscribe from this group, send email to [email protected] For more options, visit this group at http://groups.google.com/group/globalspeculators?hl=en -~----------~----~----~----~------~----~------~--~---
