NTPC Ltd has identified three LNG projects in Nigeria for a long-term gas tie-up for its power stations in India. NTPC has signed an MoU with Nigeria in May this year, where the latter has agreed to provide 3 million tonne per annum of LNG for 25 years to NTPC?s power stations in India. In lieu, NTPC has agreed to set up and operate a 700-mw gas based and a 500 mw coal based power plant in that country.
A senior delegation from NTPC will shortly visit Nigeria to hold discussions on LNG supplies from the three LNG projects including the 11 million tones per annum (mtpa) LNG project?scheduled for completion by 2011, the 10 mtpa Brass LNG project?likely to be ready by 2010 and from the expansion of the existing Bonny island project?where the first five LNG trains have been committed to Europe and USA and the sixth train is likely to be completed by the end of this calendar year.
Sources said discussions on the issue were also held on the sidelines of the recent visit of the Prime Minister Manmohan Singh to Nigeria. Detailed discussions on the issue, sources said, were likely when the Nigerian minister of state for gas visits India to attend the Indo-Africa Hydrocarbon conference, being held on November 6 th and 7 th.
To pursue the Nigerian authorities, a working level team from NTPC is also expected to visit Nigeria to hold discussions on the fuel supply agreement (FSA) for LNG supplies to NTPC.
It is significant to point here that while the MoU was signed by NTPC with the previous Nigerian government, further discussions on securing the LNG have to be held with the present Nigerian President and its decision makers.