Torrent issues EOI for 1m t/y gas for new power plant

Vol 8, PW 10 (11 Aug 04) News in Brief

Torrent Power has invited Expressions of Interest by 15th August for 1m t/y natural gas or LNG for 20 years from 2007 to fuel a proposed 1,000-MW power station near Kamrej in Gujarat.

Electricity from the plant will be supplied to Torrents utility companies in Ahmedabad and Surat. The terms of the Torrent EOI are similar to that of NTPC, says a source.

Bids should reflect the burner tip price of gas delivered to the plant. Torrent wants LNG bids from a consortium that includes either Shell (Hazira) or Petronet-LNG (Dahej).

Among its conditions are most favoured customer status and a make-up period of two years. Torrent wanted to pool its gas requirement with NTPC since both want gas from the same year.

Torrent said this arrangement could get some price discount from suppliers, reveals a source. But NTPC declined saying that as a state-owned company it could not enter into such an arrangement.