LNG suppliers ask for delay on Bidadi price bid

Vol 8, PW 15 (20 Oct 04) News in Brief

Karnatakas gas tender for 1.6m t/y gas over 17 years to the proposed 1400-MW Bidadi power station is dying a slow death following requests by two bidders to delay the deadline for opening price bids.

Petronet-LNG wants a six-month postponement and Indian Oil and Petronas want a three-month postponement, reveals a source. Reliance is the only bidder who has not sought a postponement.

Petronet-LNG and IOC/Petronas have separately written to Karnataka Power Corporation that the 25th October deadline for price bids is too short. LNG suppliers speak of a global shortage for long-term contracts.

Spot LNG prices are at $5 per mmbtu and the long-term market is not very attractive, concedes our source. They say theres no LNG available anywhere.

KPCLs expected extension to the gas price bid puts in doubt a planned meeting on 30th October with potential EPC contractors. KPCL wants gas for Bidadi from 2007-08 onwards.