Andhra power bids

Vol 14, PW 9 (21 Oct 10) News in Brief

Andhra Pradesh has invited EPC bids to build a 700-MW proposed gas-fired power station at Karimnagar in the state’s politically volatile Telengana region.

PETROWATCH learns tender documents were sold until October 20 (yesterday). The pre-bid is scheduled for November 10 at the headquarters of Andhra Pradesh-owned power producer APGenco in the state capital Hyderabad.

APGenco could award the EPC contract by March 2011 and the power station could be ready three years later. “By then,” says an APGenco source, “we hope to get an allocation of domestic gas from offshore Andhra Pradesh.

” While APGenco would prefer an allocation of 3.12m cm/d of D6 gas to fuel the proposed station, it is also ready to make do with relatively expensive R-LNG from GAIL, if necessary. Electricity produced from R-LNG at current prices costs Rs3/KwH ($0.06), we hear, still less than the Rs10/KwH ($0.22) Andhra Pradesh has paid in the past for ‘peak-demand’ electricity.