NTPC issues another tender for gas

Vol 11, PW 16 (13 Dec 07) News in Brief

NTPC has again approached the market for gas to fire its power plants.

On December 11, NTPC wrote to IOC, BPCL and GAIL asking them to bid by (Thursday) December 13 for 6m-7m cm/d beginning January 1. In all probability, NTPC will receive a lukewarm response.

“No one has gas to offer,â€‌ says one bidder, laughing. “I wonder why they issued a tender again.

â€‌ NTPC can expect letters of regret from BPCL, GAIL and IOC. Doubts also surround Shell and GSPC.

“Even Shell is having problems sourcing spot LNG cargoes,â€‌ we hear. “Japan is buying cargoes at $14.50 per mmbtu ex-ship; the delivered price could be $18 per mmbtu.

â€‌ Another bidder adds: “Japan wants to buy three spot cargoes every month till March next year. Even Korea is on a LNG buying spree.

â€‌ South Korea, we are told, has booked 13 spot LNG cargoes for January and February. “Petronet-LNG is not buying because of the prevailing high prices,â€‌ adds a source.

“That is also adding to the problem.â€‌