Advertisement

Help
You are here: Rediff Home » India » Business » Report
Search:  Rediff.com The Web
Advertisement
  Discuss this Article   |      Email this Article   |      Print this Article

Dabhol: Gail in talks with LNG suppliers
 
 · My Portfolio  · Live market report  · MF Selector  · Broker tips
Get Business updates:What's this?
Advertisement
October 28, 2005 16:21 IST

State-owned Gail India Ltd [Get Quote], which has been given the task to source fuel for restarting the Dabhol power project in Maharasthra, is talking to LNG suppliers in Qatar, Australia, Malaysia, Oman and UAE.

"We are in advanced negotiations with suppliers in Qatar, Oman, UAE, Australia and Malaysia. We hope to tie-up LNG soon," GAIL chairman and managing director Proshanto Banerjee told reporters in New Delhi.

The 2,184 MW Dabhol project, shut since June 2001 over payment dispute with its principal buyer Maharashtra, needs 2.1 million tonnes of liquefied natural gas per annum.

GAIL plans to import 0.64 million tonnes LNG in 2006 to fire 740 MW Phase-I and 2.83 million tonnes in 2007 when the 85 per cent complete 1,444 MW Phase-II also comes on stream.

Banerjee said GAIL anticipates that it would be able to complete the 5 million tonnes a year capacity LNG terminal adjacent to the power plant in 12 months.

National Thermal Power [Get Quote] Corp, which is to complete the unfinished portions of the power plant and operate it, would restart the Phase-I by July 2006 and complete the 1,444 MW Phase-II by end 2006.

Asked if LNG suppliers were quoting a price of about $7 per million British thermal unit, he said: "We are in discussions with the suppliers."

GAIL had previously projected power from the plant to cost Rs 2.3 to Rs 2.5 per kwh (unit) at ex-ship LNG price of between 3.65 and 4.25 dollars per mBtu.


© Copyright 2008 PTI. All rights reserved. Republication or redistribution of PTI content, including by framing or similar means, is expressly prohibited without the prior written consent.
 Email this Article      Print this Article

© 2008 Rediff.com India Limited. All Rights Reserved. Disclaimer | Feedback