Gas pooling now for stalled power projects
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Posted On :
Sep-28-2011
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Article Word Count :
421
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Even as the gas price pooling is a debate across industries, the government has now suggested that gas pooling for all the power plants, which are to be completed during the ongoing five year plan.
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Even as the gas price pooling is a debate across industries, the government has now suggested that gas pooling for all the power plants, which are to be completed during the ongoing five year plan. The pooling would combine both domestic gas and imported R-LNG, which of course would bring down the price of the imported gas. There are 10 such projects, which are to be completed by the terminal year of this XIIth five year plan, by March 2012. But these power plants are not getting enough gas mainly because the production of gas in Reliance Industries’ D6 Block in Krishna Godavari basin has really come down.
This particular step would benefit several power plants including Reliance Power's 2,400 MW Samalkot project, RVK Energy's 436 MW gas project, Panduranga Energy Systems' 100 MW project, Torrent Power's 1200 MW DGEN project and GSPC's 700 MW Pipavav Power, among others. In another development, ONGC tenders sought 10 helicopters sometime ago for its off-shore requirements.
Unlike the NTPC projects, the present scenario is different. Due to the lack of availability of domestic gas, the City Gas Distributors supply imported gas or RLNG (an expensive fuel compared to domestic gas) to the consumers across domestic households and various industries. Thus, the consumers in India, who mainly use gas for cooking purposes at homes, find the government subsidised LPG (Liquid Petroleum Gas) cheaper to PNG. The government itself is still analysing whether PNG is a viable fuel for Indian domestic households.
Last week, Prime Minister, Mr Manmohan Singh expressed concern over the slow pace of commissioning of power projects at a review meeting of various ministries and expressed urgency to solve the fuel supply problem at these power plants. At present, domestic gas is allocated only to existing power projects that have stopped due to gas shortage and a small quantity is given to new projects commissioned in 2009-10.
For this proposed pool, the government would be sourcing gas produced by ONGC Hazira and Oil India from the nominated fields. Certain amount of gas going from these fields to non-priority sectors such as petrochemicals and steel will be given to the priority sectors such as power and fertiliser.
ONGC reports suggest that some of the other projects which will benefit from the government’s proposed gas pooling are Gujarat State Energy Generation’s 350 MW project at Hazira, Pragati Power Corporation’s 1,000 MW Bawana power project, Lanco’s 740 MW Kondapalli Phase III, GMR’s Vemagiri expansion project and Uttarakhand’s Kashipur project.
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Article Source :
http://www.articleseen.com/Article_Gas pooling now for stalled power projects_86644.aspx
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Author Resource :
Infraline Energy offers Indian power and energy sector critical information on NTPC Projects, Captive Coal Blocks and Gas Pipeline.
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Keywords :
energy experts, critical business information, power sector, energy sector, ntpc,
Category :
Business
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Marketing
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