Shell or GSPC to win NTPC gas tender

Vol 11, PW 15 (29 Nov 07) News in Brief

Shell and GSPC appear the most likely winners of NTPC’s latest gas tender.

Last week NTPC issued a â€کlimited tender’ for 7m cm/d gas with deliveries beginning December 1 for its power plants at Kawas and Gandhar in Gujarat; Faridabad and Dadri in Haryana; and Anta and Auriya in Rajasthan. NTPC invited Petronet-LNG’s re-sellers Indian Oil, BPCL and GAIL to supply R-LNG from Dahej and Shell to supply R-LNG from Hazira.

GSPC was also invited to offer R-LNG that it, curiously enough, buys from Shell. “Shell and GSPC will win hands down,â€‌ says a source.

“No one else has any gas to offer.â€‌ Why “Petronet-LNG is not importing spot cargoes because of the high prices.

â€‌ IOC, GAIL and BPCL are expected to send letters of regret. “But NTPC should think before rejoicing,â€‌ adds a source.

“Shell or GSPC can supply gas only for power plants in Gujarat. For its other plants NTPC will have to use naphtha.

â€‌ Analysts tell us NTPC expects R-LNG price bids of around $14.50 per mmbtu ex-terminal.