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Rediff News  All News  » Business » NTPC eyes gas blocks in West Asia

NTPC eyes gas blocks in West Asia

May 23, 2006 13:19 IST
The National Thermal Power Corporation Ltd believes it can get gas at a far lower price of around $4 per million British thermal unit (mmbtu) compared to the spot price of $8 to $10 per mmbtu if it forays into overseas markets for gas blocks.

The company is also exploring the possibility of setting up generation projects in West Asia.

"After investments in gas field, liquefaction, regasification and shipping, the price of gas may work out to be between $3 to $4 per mmbtu. It makes sense to take a stake in blocks," senior company officials told Business Standard.

The power generation major has sent teams to Indonesia, Australia and Egypt to explore the possibility of acquiring stakes in gas blocks.

The company plans to set up power plants in West Asia on the condition that it gets a stake in engineering consultancy along with operations and maintenance.

"NTPC may be a part-owner in the project, which may be gas-based and use sea water for desalination. The company wants to go to West Asia as the region has a good payment security mechanism and good working conditions," sources said.

The company is also looking at US markets for consultancy business. The NTPC has seven power generation plants fuelled by gas or liquid fuel with a commissioned capacity of 3,955 MW.

The commissioned gas plants of NTPC through joint venture have a capacity of 314 MW.

NTPC's gas-based plant in Anta, Rajasthan, has a commissioned capacity of 413 Mw, Auraiya (UP) 652 Mw, Kawas (Gujarat) 645 Mw, Dadri (UP) 817 Mw, Jhanor-Gandhar (Gujarat) 648 Mw, Kayamkulam (Kerala) 350 Mw and Faridabad (Haryana) 430 Mw.

Utpal Bhaskar in New Delhi