IFFCO extends gas EOI date to 20th September

Vol 8, PW 11 (25 Aug 04) Midstream & Downstream

State-owned Indian Farmers Fertiliser Cooperative (IFFCO) has extended till 20th September the submission date for Expressions of Interest to supply natural gas or LNG for its proposed power plants.

IFFCO tells this report that early this month an Inter-Ministerial Group on fertilisers directed it to include the fuel requirement of other Indian fertiliser companies in the tender before seeking supplies. Ministers on the group included deputy chairman Planning Commission Montek Singh Ahluwalia, finance minister P Chidambaram, oil minister Mani Shankar Aiyar, power minister PM Sayeed and fertiliser minister Ram Vilas Paswan.

This will increase the gas requirement substantially from the 20m cm/d we wanted initially, said an official. As directed, IFFCO has written to KRIBHCO, Fertilisers and Chemicals Travancore, Gujarat State Fertilisers Cooperative, Paradeep Phosphates, Rashtriya Chemicals & Fertilisers, Pyrites Phosphates and Chemicals, Deepak Fertilisers and Gujarat Narmada Valley Fertilizers, asking them to detail their gas requirement as soon as possible.

Till now we have not got a response from any of them, an official tells us. If we dont get a response, IFFCO will go alone for the procurement.

By increasing the LNG requirement the government wants to mitigate risk and establish a benchmark price for regassified LNG. On 21st June, IFFCO floated a tender for 20m cm/d regassified LNG or natural gas for four proposed power plants in Gujarat, Uttar Pradesh and Andhra Pradesh in line with its plans to diversify.

The company wants 5m cm/d gas for each of the proposed power projects to be set up in Kalol (Gujarat), Aonla and Phulpur (Uttar Pradesh) and Nellore (Andhra Pradesh). Six companies are interested: Reliance, British Gas, Shell, Indian Oil/Petronas, GAIL and Gujarat Petroleum.