Gujarat wants D6 parity with AP

Vol 13, PW 7 (10 Sep 09) News in Brief

Gujarat is demanding more D6 gas so it can fire its power plants at 70% Plant Load Factor (PLF) in line with what is received in Andhra Pradesh.

Gujarat principal energy secretary S. Jagadeesan met oil secretary RS Pandey inDelhiin late August to make the request in person.

“Why should Andhra get gas at 70% PLF and other states at 60%â€‌ Jagadeesan questioned, while speaking to PETROWATCH. “I fail to see the logic.

We want D6 gas at 70% PLF because it is cheaper than R-LNG and this would bring down our production costs.â€‌ In Gujarat, R-LNG retails for between $6.80 and $7/mmbtu, significantly higher than the delivered cost of D6 gas at between $5.40 and $5.60/mmbtu.

Last week, Gujarat chief secretary D. Rajagopalan repeated the request in a letter to Pandey.

“The response has been positive and we expect our request will be accepted,â€‌ adds Jagadeesan. From April 28 this year, nine power plants in Gujarat began receiving a total 7.54m cm/d of D6 gas in stages.