Gas-fired power station for Vaghel in Gujarat

Vol 15, PW 7 (06 Oct 11) Midstream & Downstream

Few know where the gas will come from but that isn’t stopping plans to build a new gas-fired power plant in north Gujarat.

By January next year EPC contractors can expect a tender notice from the Delhi Mumbai Industrial Corridor Development Corporation (DMICDC) - attached to the union Department of Industrial Policy and Promotion - to build a 1300-MW gas-fired power station some 2.2-km from Vaghel village in Gujarat’s Patan district, an arid region bordering Rajasthan. “Most power projects in Gujarat are based south of Ahmedabad,” says a Gandhinagar official.

“This is the first one planned in north Gujarat.” DMICDC has set up a SPV (Special Purpose Vehicle) to set up and operate the proposed Vaghel station called the DMICDC Vaghel Power Company.

Estimated to cost approximately Rs3800cr ($775m), the proposed power station will stand on 226 acres of unused land allotted by the Gujarat government 90-km from Ahmedabad city. Privately-owned agricultural land surrounds the site, which also lies adjacent to a government-protected forest.

DMICDC signed a draft Gas Supply Agreement (GSA) with GAIL this year to source 5m cm/d of gas for the proposed Vaghel station but it’s not yet clear where GAIL will source supplies. Also signed were draft GSAs for four other power projects: two in Maharashtra, one in Gujarat and another in Madhya Pradesh.

“DMICDC Vaghel has also signed a memorandum of cooperation with GAIL,” adds an industry source. DMICDC wants to commission the power station by end-2014 and might need 5m cm/d by early 2015.

“Vaghel could get gas supplies from GSPC’s Deen Dayal gasfield (from 2013),” speculates a source. “Or it might have to depend on R-LNG.

” DMICDC has also applied for a D6 gas allocation for Vaghel.