Reliance Industries may sell one-fourth of the 40 million standard cubic metres per day of natural gas production likely from its gigantic Krishna Godavari field off the Andhra coast to Dabhol Power project in Maharashtra after its revival.

"If gas is available at price lower than LNG, Dabhol will opt for it. After its revival, Dabhol will certainly be on Reliance scanner," informed sources said in New Delhi.

The $2.9-billion Dabhol project, currently shut following a payment dispute with its sole customer Maharashtra State Electricity Board, will replace naphtha with gas as feed stock once the 1,444 mw phase-II is complete.

Incidentally, RIL is one of the about half a dozen suitors for taking over the 2,184 mw state-of-the-art project from bankrupt US energy trader Enron Corp.

RIL already has plans to pipe half of Krishna Godavari gas to Maharasthra where it is negotiating with MSEB for supply of 2 mmscmd for its 912 mw power plant. Besides, it plans to supply gas to couple of power plants of BSES in the state including the proposed 500 mw project at Saphale.

Sources said the company has submitted the commerciality report to the Government's upstream nodal agency Directorate General of Hydrocarbons  for approval.

"The consortium of RIL and Niko Resources of Canada expects pleat production of 40 mmscmd for nine years. It says the production would begin within 30 months from the date of Government approval," sources said adding development plan for the field would be submitted after the quantum of gas production DGH approves.

Sources said RIL plans to sell 20 mmscmd of KG gas in ndhra Pradesh and adjoining states and was exploring gas ales to fertiliser and cement companies like Nagarjuna ertilisers & Chemicals, Godawari Fertiliser & Chemicals in Ainada in Andhra Pradesh, Chambal Fertiliser and Coromdanal Fertiliser in Vizag.

Besides, the 360 mw Kakinada power project of BSES would switch to KG gas. RIL was also in talks with AP Power Generation Corp for supplying gas to its under-utilised power plants and future expansions.