QATAR: NTPC buys LNG at $12.27 per mBtu to meet gas needs

State-run NTPC Ltd has purchased spot cargoes of liquefied natural gas for as high as 12.27 dollars per million British thermal unit this fiscal to meet fuel requirement at its power plants.

NTPC, which ironically walked out of Petronet LNG Ltd some years ago as it thought buying LNG at $2.53 per mBtu (delivered price of $4.60 per mBtu) from Qatar was too expensive, has been making monthly tenders to procure LNG for its plants at Anta, Kawas, Gandhar, Auraiya and Dadri.

The company has eight gas-fired power plants with a total capacity of about 4,800 MW. This includes 740 MW first phase of Dabhol project, which is currently being run on naptha.

Official sources said NTPC bought 7 million standard cubic meters per day of gas this month from BPCL, IOC, GAIL at 11.33-11.78 dollars per mBtu and Shell as well as GSPC at $12 per mBtu.

It bought a similar quantity of gas in December 2006 for 10.90 to 11.54 dollars per mBtu from the state-run firms and at 12 dollars per mBtu from GSPC.

NTPC made two tender purchases of 3-4 mmscmd each in November, getting offers for 10.40-11 dollars per mBtu from state-owned companies at 12.27 dollars per mBtu from GSPC.

In October last year, NTPC bought 7 mmscmd gas for its Anta, Auraiya, Dadri, Faridabad, Kawas and Gandhar plants for a price ranging from 9.77 to 12.27 dollars per mBtu. In the previous month, it procured 3-4 mmscmd from GAIL at 11.53 dollars per mBtu while the July purchase of 7 mmscmd cost the company 10.33 dollars per mBtu, sources said.

NTPC had 10 per cent stake in Petronet LNG Ltd, the company formed to import LNG at Dahej and Kochi, along with IOC, ONGC, BPCL and GAIL. But NTPC walked out soon after Petronet finalised purchases from RasGas of Qatar.

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