Reliance Power considers R-LNG for Samalkot

Vol 14, PW 21 (21 Apr 11) Midstream & Downstream

Anil Ambani-controlled Reliance Power might be forced to use R-LNG because of declining gas production from the D6 gasfield operated by his brother Mukesh.

PETROWATCH learns Anil Ambani is considering R-LNG or gas from sources other than D6 to fire the proposed 2400-MW expansion of his 220-MW Samalkot power station in Andhra Pradesh. Until recently, Ambani was hectically lobbying the oil ministry to get a gas allocation for Samalkot from D6, and even made a personal request to oil minister Jaipal Reddy, days after he took office.

But D6 gas production, once the subject of a major gas pricing dispute between the two Ambani brothers, shows no sign of reversing its steady decline. “We’re talking to a few LNG suppliers to buy gas for Samalkot,” confirms a Reliance Power source.

“We have also begun talking to Petronet-LNG and Shell about bringing in LNG cargoes at either the Dahej or Hazira LNG terminals.” Samalkot currently generates 220-MW of power using 190,000 cm/d of D6 gas, he adds.

But Reliance Power plans to commission three more ‘modules’ of 470-MW each at the station, located just 12-km from the D6 landfall point in Andhra Pradesh. “One module will be commissioned in December this year (2011),” we are told.

“The second will be commissioned in January 2012 and the third is scheduled for commissioning soon after in February 2012.” Together, these three modules will add 1410-MW of ‘installed capacity’ to Samalkot.

But they could generate nearly 1500-MW of electricity and need up to 3.2m cm/d of gas. Besides R-LNG and D6 gas, Reliance Power is also evaluating KG basin gas discoveries by ONGC and GSPC.

Reliance hopes to add 2400-MW of generating capacity in total at Samalkot for which it will need approximately 9.6m cm/d.

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