Gujarat Torrent in talks for LNG supply

Vol 3, PW 18 (29 Sep 99) News in Brief

Gujarat Torrent Energy Corporation (GTEC) is in talks with Enron, British Gas and Petronet-LNG for the supply of 1.3m tonnes a year (t/y) of LNG.

"Anyone who can get LNG to us first is going to be the winner", said GTEC Chairman Nitin Shukla, "We want LNG at the earliest. If any of the players can provide us with LNG tomorrow we would buy it".

GTEC operates a naphtha-fired 650-MW power plant in the industrial heartland of Bharuch in Gujarat. Shukla confirms that GTEC has received government permission to set up a second power plant of 650-MW taking the groups overall capacity to 1,300-MW.

Talks are also on with the Gujarat State Electricity Board to extend the terms of the Power Purchase Agreement (PPA). Shukla said use of re-gassified LNG would bring the operating cost of his power plant down by Rs1.50 per unit to Rs2.00.