Hiranandani power station will need 10m cm/d

Vol 14, PW 2 (15 Jul 10) Midstream & Downstream
     

Mumbai-based Hiranandani Group, better known for its massive infrastructure and real estate business, plans to set up a 2500-MW gas-fired power station at Talegaon near Pune in Maharashtra.

Speaking to PETROWATCH, Darshan Hiranandani – son of group co-founder Niranjan Hiranandani – says the proposed power station will need at least 10m cm/d of gas. Darshan is director of the Hindustan Electricity Generation Company, which is managing the Hiranandani group’s first venture into the power sector.

“We were looking for the next big thing,” he says. “First I thought of building roads and looked at acquiring two or three road-building companies but eventually decided against it.

” In July last year, the group decided to enter the power generation business and set up a gas-fired station, as opposed to a coal-fired station. Coal, decided Hiranandani, was a pollutant, and logistically challenging.

This February, the Hindustan Electricity Generation Company signed Heads of Agreements with GAIL and Bharat Petroleum to buy R-LNG for the proposed power station. “We’ve also signed a gas transmission agreement with GAIL,” adds Hiranandani.

“GAIL’s gas pipeline is just a kilometre from the power station site.” Hindustan Electricity Generation Company, he says, has no problem buying R-LNG, even if it is more expensive than domestic gas supplies.

But he confirms his company has approached India’s power regulator – the Central Electricity Authority – and the oil and power ministries asking for a domestic gas ‘allocation’. “If we get a gas allocation,” he says, “it will be a bonus.

” Phase-I of the power station project will see installation of 350-MW capacity and require approximately 1.5m cm/d of gas. Phase-II will be 700-MW, while Phase-III will be 1400-MW.

Turbines for Phase-I and Phase-II should be ordered by this December, says Darshan. “Tendering for turbines is underway,” we hear.

“The contract should be awarded soon.” Phase-I is expected to begin generating power from December 2012.