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EGoM to meet next week to consider gas allocation to 6 power plants

New Delhi: An Empowered Group of Ministers (EGoM) headed by finance minister Pranab Mukherjee is likely to meet on 10th November to decide on allocating natural gas from fields like Reliance Industries' KG-D6 to six upcoming power plants, reports PTI.

"The EGoM was previously scheduled to meet on 2nd November but it has now been put off to 10th November," a top government official said.

The panel, which had last met on 28th July, is likely to decide on allocating gas to six power plants that have been certified by the Central Electricity Authority (CEA) of being commissioned by in the Eleventh Five-Year Plan ending March 2012.

"The six plants certified by CEA have a requirement of 15.59 million standard cubic meters per day of gas (mmscmd)," he said.

The EGoM is to consider allocating 4.67 mmscmd to the 1,500MW Bawana project in national capital, 3.08 mmscmd to Lanco's 770MW Kondapalli expansion project in Andhra Pradesh, 3.07 mmscmd for GMR's 768MW Vemagiri expansion project in Andhra Pradesh, 2.62 mmscmd to the 702MW Pipavav project in Gujarat, 1.31 mmscmd to the 351MW Hazira unit of Gujarat State Electricity Corporation and 0.84 mmscmd for the 225MW Kashipur project in Uttarakhand.

The official said seven other projects including Anil Ambani Group's 2,400MW Samalkot expansion project in Andhra Pradesh may not be considered for allocation of gas just yet.

"Currently, only the plants that have CEA certificate of completion will be considered. There are seven other plants which say they will be commissioned by 2012 but those will be considered after CEA certifies their claims," he said.

The 2,400MW expansion project planned by ADAG firm Reliance Power would need 8 mmscmd of gas.

The official said RIL is expected to reach 80 mmscmd of output from its eastern offshore KG-D6 fields sometime in 2012 or 2013. It currently produces about 57-58 mmscmd as opposed to close to 64 mmscmd of gas being allocated by the government to urea manufacturing units, power plants, LPG units, city gas projects, steel plants and refineries.

Besides, state-owned exploration and production (E&P) major Oil and Natural Gas Corporation (ONGC) is to produce around 9 mmscmd more gas in 2011-12. Another 8 mmscmd is expected to be available from GSPC's KG basin fields in 2012-13.

The seven plants awaiting CEA certification would in all need 20.96 mmscmd of gas. 4.48 mmscmd gas has been sought for the 1,200MW project that Torrent Power is setting up at the Dahej SEZ in Gujarat, 0.4 mmscmd for the 100MW unit of Pandurang Energy Systems in West Godavari District of Andhra Pradesh and 1.62 mmscmd for the 436MW plant of RVK Energy in East Godavari District, also in Andhra Pradesh.

Another 1.4 mmscmd was sought for the 382.5MW Sugen Phase-1 in Gujarat and 2.53 mmscmd each for the 800MW Jegurupadu expansion and the 800MW Gautami Stage-II, both in Andhra Pradesh.


Qatar negotiates 5 mn tonne per year LNG contract with India

Singapore: Qatar is negotiating to supply four to five million tonnes per annum of liquefied natural gas (LNG) to India, reports PTI quoting the emirate's deputy prime minister Abdulla Bin Hamad Al-Attiyah.

The additional LNG would be for the Tamil Nadu market through a LNG receiving terminal being built near Chennai.

Addressing the Singapore International Energy Week, Mr Al-Attiyah said the LNG would be diverted from its existing long-term LNG export contracts with the United States buyers, as there is a provision for the two sides to divert excess capacity for better prices.

Mr Al-Attiyah, who is also the energy and industry minister of Qatar, did not touch on the likely price but market sources said Qatar would be looking for a spot price of $9 per million British thermal unit (mmBtu).

Qatar has an earlier contract to supply 7.5 million tonnes a year of LNG to India through the Dahej LNG receiving terminal.

Mr Al-Attiyah also said negotiations were underway to supply some 7 million tonnes a year of additional LNG to China, with which the emirates currently has 5 million tonnes a year LNG export contract.

Mr Al-Attiyah impressed on the importance of China and India as the growing LNG markets, saying that the LNG would be the best competitive energy in the coming decades.


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