LNG Above $3/Mbtu Unacceptable: NTPC

New Delhi, Sept 25: | Updated: Sep 26 2003, 05:30am hrs
National Thermal Power Corporation (NTPC) is looking for a LNG price of $3 per million btu for its proposed 2,600 mw gas-based power plants and anything above this price would be unacceptable to the corporation.

Addressing the media here on Thursday, chairman and managing director of NTPC, CP Jain, said that international gas studies show that CIF price of gas at the western coast of India should be in the range of $1.6 to $1.97 per million btu and even after adding the re-gassification and transportation cost within the country the delivered cost of LNG should not exceed $2.7 per million btu.

10 Cos Bid For LNG Supply To Kayamkulam Plant

Ten global energy firms, including Royal Dutch/Shell, BP Plc, BG group, Rasgas, Petronas and Reliance Industries, have bid for supplying 2 million tonne of LNG /natural gas to NTPCs 2300 mw gas-fired Kayamkulam power project in Kerala. Thursday was the last date for submission of request for qualification for the 2 mt LNG/natural gas supply tender, the second such tender from NTPC.

Mr Jain said that NTPC is looking for an LNG price of $3 per million btu and anything above it would imply that many of the LNG-based power projects would be in jeopardy. The benchmark, we have set is sustainable for both the users (NTPC) as well for the suppliers, he said.

Mr Jain said that international financial studies reveal that the CIF price for gas imported from Qatar to the west coast in India should not exceed $1.6 per mmbtu while that of the gas imported from Iran should be $1.8 per mmbtu, and for gas from Yemen it should be $1.97 per btu. All together, after including the re-gassification and transportation costs, the price of LNG should not exceed $2.7 per mmbtu, he added.