NTPC evaluating spot gas supply offers

Vol 10, PW 15 (16 Nov 06) News in Brief

NTPC has begun evaluating offers received for its latest spot gas tender, which closed on 13th November.

Usual suspects Shell, GAIL, Indian Oil and Bharat Petroleum are believed to have submitted offers to supply short term R-LNG to NTPCs power plants at Kawas, Gandhar, Anta, Auraiya, Dadri and Faridabad. No details are yet available of the price offered by each of the parties.

Shell is bringing in LNG at its Hazira terminal; Petronet-LNG is importing spot LNG on behalf of GAIL, Indian Oil and Bharat Petroleum for onward supply to NTPC. This is the fourth spot gas tender from NTPC since it began buying short-term gas in April this year.

As with earlier tenders, NTPC has not indicated how much R-LNG it requires at each power station or for how long. All it has revealed to suppliers is that it is facing a total shortfall of 4m cm/d gas at all these power stations put together.

Expect the evaluations to be completed and award of contract by the end of this week.