Dabhol power plant seems to have been given a fresh lease of life. In what could ease gas supplies for Dabhol power, Petronet LNG (PLL) has tied up with companies in Qatar and Algeria to import 1.5MT of liquified natural gas (LNG), that will be used to run the power plant.
Ratnagiri Gas and Power Private, which is the new name for Dabhol Power, will get LNG at a cost of $4.93 per million British thermal units (MmBtu). Petronet will supply the LNG from its terminal in Dahej through a pipeline which is scheduled to be completed by June, Petronet managing director P Dasgupta told ET.
Initially, PLL will supply 1.5MT of LNG which will be increased to 2.1MT, when the power plant runs at its full capacity of 2,100MW.
The price of $4.93 per MmBtu will remain till September 2009. Meanwhile, the proposed LNG terminal will be completed near Dabhol plant and GAIL would tie up for the long-term LNG later on. GAIL has approached LNG suppliers in Australia, Malaysia, Indonesia, Abu Dhabi, Oman, Qatar, Egypt and Algeria for tying up supply from 2009. No commitment has so far been received, said a source.
Maharashtra is getting almost 700MW from Dabhol unit II, at Rs 5.01 per unit, since the project is being run on naphtha, which is costlier than gas. If the price remains same, then MahaDiscom, the distribution arm of Maharashtra State Electricity Board, is not likely to buy the power during the monsoon when the demand falls.
In the previous monsoon, MahaDiscom had stopped buying power from Dabhol that resulted in the shutdown of the plant.
Recently MahaDiscom, the sole customer of RGPPL, signed a power purchase agreement with RGPPL. Under the agreement, power will be supplied to MahaDiscom at a fixed cost of 98.50 paise and a variable cost of Rs 1.96, taking the total cost per unit to Rs 3.02, inclusive of VAT and interest component, said Ratnagiri Gas MD Chandan Roy.
Last month, RGPPL had assured 1,400MW electricity to MahaDiscom from June 2007. But sources say that schedule could be difficult as there have been problems in laying pipelines.
Ratnagiri Gas and Power Private, which is the new name for Dabhol Power, will get LNG at a cost of $4.93 per million British thermal units (MmBtu). Petronet will supply the LNG from its terminal in Dahej through a pipeline which is scheduled to be completed by June, Petronet managing director P Dasgupta told ET.
Initially, PLL will supply 1.5MT of LNG which will be increased to 2.1MT, when the power plant runs at its full capacity of 2,100MW.
The price of $4.93 per MmBtu will remain till September 2009. Meanwhile, the proposed LNG terminal will be completed near Dabhol plant and GAIL would tie up for the long-term LNG later on. GAIL has approached LNG suppliers in Australia, Malaysia, Indonesia, Abu Dhabi, Oman, Qatar, Egypt and Algeria for tying up supply from 2009. No commitment has so far been received, said a source.
Maharashtra is getting almost 700MW from Dabhol unit II, at Rs 5.01 per unit, since the project is being run on naphtha, which is costlier than gas. If the price remains same, then MahaDiscom, the distribution arm of Maharashtra State Electricity Board, is not likely to buy the power during the monsoon when the demand falls.
In the previous monsoon, MahaDiscom had stopped buying power from Dabhol that resulted in the shutdown of the plant.
Recently MahaDiscom, the sole customer of RGPPL, signed a power purchase agreement with RGPPL. Under the agreement, power will be supplied to MahaDiscom at a fixed cost of 98.50 paise and a variable cost of Rs 1.96, taking the total cost per unit to Rs 3.02, inclusive of VAT and interest component, said Ratnagiri Gas MD Chandan Roy.
Last month, RGPPL had assured 1,400MW electricity to MahaDiscom from June 2007. But sources say that schedule could be difficult as there have been problems in laying pipelines.
Blogalaxia Tags: Qatar,LNG,Algeria
