Torrent wants pipeline to Dahej LNG terminal

Vol 15, PW 12 (15 Dec 11) Midstream & Downstream

Torrent Power may soon become only the second R-LNG customer after GSPC with a dedicated pipeline to the 10m t/y LNG terminal at Dahej operated by Petronet-LNG.

Ahmedabad-based Torrent, we hear, wants to lay a 24-inch diameter, 9-km R-LNG pipeline connecting the Dahej terminal to its own upcoming 1200-MW DGEN (Dahej Generation) power station nearby. But unlike GSPC, which bullied Petronet-LNG into clandestinely giving it direct connectivity to the Dahej terminal in 2009, Torrent is much more polite and going through proper channels.

In response to a formal request, Petronet-LNG officials replied to Torrent on October 11 with ‘in principle’ agreement to the dedicated pipeline to DGEN. However, Petronet-LNG added a stiff rider: it wants Torrent to first sign a “firm and binding GSPA (Gas Sales and Purchase Agreement)” for the 8m cm/d of R-LNG needed to fuel the power station.

“Only then can Torrent go ahead with the Dahej to DGEN pipeline,” wrote Petronet-LNG. When contacted, a Torrent source confirms that the proposed pipeline would help ensure DGEN receives consistent gas supplies, once commissioned.

“DGEN and the Dahej terminal are barely 9-km apart,” he says. “This will mean lower ‘transportation tariffs’.

These are savings we can pass on to our consumers.” Phase-I of DGEN, set up by Torrent Power sister company Torrent Energy, is expected to be ready to generate 400-MW from mid-2012.

Siemens won the EPC contract to construct Phase-I in July 2010, and is also likely to win the contract to construct another 400-MW unit. At present, Torrent generates 1647.5-MW electricity in total and has an annual turnover of Rs6927cr ($1.32bn).

It also distributes 15bn units of electricity every day to 3m customers across five cities: Ahmedabad and Surat in Gujarat; Bhiwandi in Maharashtra; and Kanpur and Agra in Uttar Pradesh.

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